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Of course it’s going to hurt home values but not as much as you think.

There are a lot of people making bad wealth creating decisions because of that interest deduction. If we were to eliminate that incentive to be stupid with money, Americans would be much better off. For instance a lot of people who are not good with money made the decision to buy homes because of Fannie/Freddie guarantees and the interest deduction. Now that the bubble has popped, they’ve had what little they could save wiped out.

Negative cash flow predicated on building fake equity does not increase home values.

Of course it’s going to hurt home values but not as much as you think.

Just for the record, I think 10 to 15 percent if it's done across the board. If it is just done by lowering the exempt amount from $1mm to, say, $400K, there will be compression of prices--higher priced homes will be hurt some, lower priced homes might actually be helped as people will shift down in their purchases.

-—”There are a lot of people making bad wealth creating decisions because of that interest deduction. If we were to eliminate that incentive to be stupid with money, Americans would be much better off. “

Ah, a rational person here among a bunch of RINOS.

I can’t believe all the Freepers who go ballistic on “RINOS” yet when the Home Mort Deduction is up on the table for elimination, they’re squawking bloody murder.

Don’t you people get it that the Fed meddling with the markets and with people’s buying decisions is WRONG. The FED had deemed that “homeownership is good, therefore, we will subsidize one class of people over another.” Don’t you guys see this is the same kind of “social engineering” that President Obeyme Chewbacca does every day??

I have a hefty mortgage, but OUT OF PRINCIPLE, I’m all for eliminating/phasing out the deduction. That’s what having a fiduciary sense about the country means (I can divorce my own self-interests from my decision-making) and make ETHICAL choices.

All you people here whining about the potential for losing the deduction are allowing your personal self-interest to get in the way of evaluating the issue from a purely ethical standpoint.