that interest is profit for the bank, the bank pays the taxes on it, yes?
Posted on 08/06/2011 7:06:51 AM PDT by SeekAndFind
NYT Economix says that the average length of unemployment is the longest ever recorded, up to more than 40 weeks (compared to less than 15 weeks in the downturn of the late 1940s). According to the Census, home ownership rates have been growing gradually since 1950, as has the duration of unemployment.
Let’s look at a couple of reasons that increased homeownership could lengthen unemployment periods. Let’s consider mobility. There is a large variation in demand for labor across states and regions. Homeowners are crippled in terms of mobility compared to renters.
The homeowner, especially in a state with a shrinking number of jobs, may need months or years to sell a house and move. He may delay the move for months in hopes of landing a local job that will spare him the pain of paying a 6 percent real estate commission. A renter can pack up, tow a U-Haul, and be on the other side of the country within a month.
A renter may feel more urgency about earning enough money to make monthly payments. A landlord can get a non-paying tenant evicted, in most states, in a matter of weeks
(Excerpt) Read more at businessinsider.com ...
“putting America to work” by making them poor, just like they did in the 30’s. The pharoahs of this world would have us all digging their roads and monuments named after them if they could.
The slaves of Egypt got a roof over their head too.
Interesting post.
The special tax treatment granted to home mortgage interest has subsidized a population into an economically inefficient non-mobility.
This is the opening barage to remove the interest deduction for home mortages...bet on it.
Incorrect all counts:
It is quite easy to move to another part of the country and lease your owned home until the economy turns around.
I do this all the time with clients and it is very straight forward.
Welfare, however, does nail people’s shoes to the floor.
that interest is profit for the bank, the bank pays the taxes on it, yes?
It is quite easy to move to another part of the country and lease your owned home until the economy turns around.
This is the opening barage to remove the interest deduction for home mortages...bet on it.
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if so...how is this going to effect home buying strategy? To avoid paying interest people will save a bigger down payment, make bigger monthly payments, and choose shorter duration loans? I think that would be good for the economy given the mess we are currently in.
If there is a tax break to offset the removal of interest deductions I will be all for it. But I doubt it will work that way.
Standard plain wrap communist drivel : )
Why does the business insider think we need the Soviet Union here?
Yeah, right....not in this country!
You can’t be serious.
Yes the perfect solution!
While some Americans relax in their single family, manicured lawn, suburban homes pouring over the latest figures from their investment in Red China factories and Red China export businesses the perfect U.S. worker (hey! s/he has a job, OK?) is on the road! Going from temp job to temp job. Never at one location long enough for the children to learn the name of their school. What a deal!
Not a bad idea. I’ve never gotten that deduction.
“Slaves don’t need personal property. State issue and state control is the only answer.” = Insanity =
Communists are an incompatible and undesirable species for which there is no compromise. Their eradication is the only way this nation will ever recover.
Same kind of logic that says, “auto deaths are down because of unemployment, because less people are on the road”, so unemployment has been good.
Grapes of Wrath, The Good Old Days
that interest is profit for the bank, the bank pays the taxes on it, yes?
The y only pay on the difference between revenue and cost (i.e. profit).
Some lenders are non-profit, like Credit Unions, and set rates to it washes out at the end of the year. Other lenders make mistakes or get unlucky and end up with losses, and pay no taxes.
You can’t be serious.
How is special tax treatment for home mortgage interest Communism?
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