Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Industry Fears Loss Of The Mortgage Interest Rate Deduction
Yahoo News ^ | Nov 02, 2005, 12:00 am PST | Reality Times

Posted on 11/02/2005 5:57:15 AM PST by austinite

click here to read article


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 ... 101-120 next last
To: Rutles4Ever

I'm on your side on that one. However, it should be noted that from a Federal standpoint all of those projects in the recent highway bill are funded entirely by the Federal motor fuels tax. This tax reform proposal would still be on the table even if there was no Federal highway bill.


41 posted on 11/02/2005 6:44:44 AM PST by Alberta's Child (I ain't got a dime, but what I got is mine. I ain't rich, but Lord I'm free.)
[ Post Reply | Private Reply | To 28 | View Replies]

To: E. Pluribus Unum
Are there any taxes you don't like?

Yeah -- most of them.

But reality has a way of intruding on our fantasies, doesn't it?

42 posted on 11/02/2005 6:46:10 AM PST by Alberta's Child (I ain't got a dime, but what I got is mine. I ain't rich, but Lord I'm free.)
[ Post Reply | Private Reply | To 30 | View Replies]

To: dawn53
Credit cards aren't a bad thing, you just have to use them so they pay you, and you don't pay them.

Good point, but credit card companies hate people like you and will damage your credit rating if they get a chance.

43 posted on 11/02/2005 6:46:57 AM PST by E. Pluribus Unum (Islam Factoid:After forcing young girls to watch his men execute their fathers, Muhammad raped them.)
[ Post Reply | Private Reply | To 36 | View Replies]

To: 1Old Pro

That's a good point. If my memory serves me correctly, the government allowed the S&Ls to underwrite commercial loans as a last-ditch measure to help them get out of that interest rate quandary I described earlier.


44 posted on 11/02/2005 6:47:33 AM PST by Alberta's Child (I ain't got a dime, but what I got is mine. I ain't rich, but Lord I'm free.)
[ Post Reply | Private Reply | To 34 | View Replies]

To: Alberta's Child
Yeah -- most of them.

Name one, and why.

Not that I think you're a liar or anything.

45 posted on 11/02/2005 6:47:33 AM PST by E. Pluribus Unum (Islam Factoid:After forcing young girls to watch his men execute their fathers, Muhammad raped them.)
[ Post Reply | Private Reply | To 42 | View Replies]

To: Alberta's Child
Thank Uncle Sucker for that. My point is that the home-interest subsidy, as all subsidies do, artificially inflates the price of housing beyond what it would be in the absence of such subsidies - mortgage lenders are not fools, and as soon as they figure out that you can pay more, you will pay more.

Anyway, what do I care? That's someone else's problem, since I don't own a house or have a mortgage at the moment - I'm currently shopping, and the prospect of shaving 20% off the front end sure sounds fine to me ;)

46 posted on 11/02/2005 6:47:48 AM PST by Senator Bedfellow (g_r)
[ Post Reply | Private Reply | To 27 | View Replies]

To: Rutles4Ever
WTF are these people thinking?

If Michael Moore planted a mind control device into their brains and instructed them to behave in a manner designed to convince the voters that Republicans want to grind the middle class into the dirt so that the rich can hire servants cheap, there would be no way to tell the difference.

47 posted on 11/02/2005 6:48:10 AM PST by steve-b (A desire not to butt into other people's business is eighty percent of all human wisdom)
[ Post Reply | Private Reply | To 9 | View Replies]

To: E. Pluribus Unum

Haven't found it the case, both my husband and I have Credit scores above 800 and we've been doing this for years. I figure if they don't like the way I use the "credit cards" then they can quit sending me the offers at anytime.


48 posted on 11/02/2005 6:49:29 AM PST by dawn53
[ Post Reply | Private Reply | To 43 | View Replies]

To: Alberta's Child; E. Pluribus Unum; finnsheep
It is inherently unfair to provide a homeowner with an interest deduction that is not available to someone who pays other forms of interest on loans (auto loans, student loans, etc.).

=============================================

Nonsense. home ownership is the single most important factor in any community's economic and societal stability. This has long been recognized and encouraged through the tax code.

49 posted on 11/02/2005 6:49:41 AM PST by wtc911 (see my profile for how to contribute to a pentagon heroes fund)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Wurlitzer

I can't believe what I'm hearing here. When people make their decisions on where to live and how to invest their money to make more money the mortgage tax deduction pays a huge role. What is wrong with that? We're not talking about people who are in debt. The class envy here is just flooring me.


50 posted on 11/02/2005 6:51:07 AM PST by Hildy
[ Post Reply | Private Reply | To 37 | View Replies]

To: son of caesar
What you say is well and good, but how do you feel about changing the rules of the game midstream for some 50 million people or thereabouts who made investment decisions based on the rules that are allowed?

Your point is valid, but this kind of thing happens all the time, and there is nothing anyone can do about it except complain. Sometimes "changing the rules of the game midstream" works to the taxpayer's advantage, and sometimes it doesn't. Making long-term investment decisions based on tax laws that can change in 24 hours carries an inherent risk.

If you think the elimination of the mortgage interest deduction is bad, just wait a couple of decades and see what happens when they eliminate the tax exemption on Roth IRAs.

51 posted on 11/02/2005 6:51:12 AM PST by Alberta's Child (I ain't got a dime, but what I got is mine. I ain't rich, but Lord I'm free.)
[ Post Reply | Private Reply | To 21 | View Replies]

To: Alberta's Child
subsidizing homeowners

Letting someone keep their own money is not a subsidy.

It is inherently unfair to provide a homeowner with an interest deduction that is not available to someone who pays other forms of interest on loans (auto loans, student loans, etc.).

If the tax only affects people who don't have the sense to structure their finances to avoid it (by paying the deductable type of interst instead of the non-deductable type), it's like the lottery -- a tax on stupidity. Since you get less of things you tax, a tax on stupidity is a social good.

52 posted on 11/02/2005 6:51:40 AM PST by steve-b (A desire not to butt into other people's business is eighty percent of all human wisdom)
[ Post Reply | Private Reply | To 20 | View Replies]

To: dawn53; E. Pluribus Unum
Credit cards aren't a bad thing, you just have to use them so they pay you, and you don't pay them.

I think EPU was talking about CC debt, which doesn't apply to your scenario. I doubt that EPU never uses a CC.

53 posted on 11/02/2005 6:53:40 AM PST by GraniteStateConservative (...He had committed no crime against America so I did not bring him here...-- Worst.President.Ever.)
[ Post Reply | Private Reply | To 36 | View Replies]

To: Eric in the Ozarks
A societal case can be made for encouraging home ownership . . .

Fine. The tax code already encourages home ownership by eliminating the capital gains tax on the sale of a primary residence. Anything beyond that is completely unnecessary.

Ironically, the mortgage interest deduction has really done nothing more than drive up the cost of homes by making them "affordable" to people who would otherwise be unable to pay exorbitant prices for their homes.

54 posted on 11/02/2005 6:53:56 AM PST by Alberta's Child (I ain't got a dime, but what I got is mine. I ain't rich, but Lord I'm free.)
[ Post Reply | Private Reply | To 40 | View Replies]

To: austinite
Not too thrilled about the proposed changes myself. I haven't gone through the deduction changes in detail yet but just looking at the change in the tax rate structure I'd be paying 2000 dollars more under the simplified plan and 500 dollars more under the other proposed plan. Throw in the changes in deductions and I'd probably be looking at a reduction of 5-10% of after-tax income. Manageable, but I would have to reevaluate alot of things including home ownership.
55 posted on 11/02/2005 6:54:12 AM PST by NYorkerInHouston
[ Post Reply | Private Reply | To 1 | View Replies]

To: Alberta's Child
Perhaps they should abolish the mortgage deduction for rental property also? Then the landlord could raise the rent to make up for the lost deduction and everyone could suffer equally.

Of course the bank would own the property because the decrease in value put the owner upside down just like the S/L debacle.

56 posted on 11/02/2005 6:54:22 AM PST by tubebender (Chris Matthews suffers from "IRRATIONAL EXUBERANCE"...)
[ Post Reply | Private Reply | To 20 | View Replies]

To: E. Pluribus Unum

I hate paying FICA taxes, and I despise those stupid "user taxes" on my telephone bill.


57 posted on 11/02/2005 6:55:35 AM PST by Alberta's Child (I ain't got a dime, but what I got is mine. I ain't rich, but Lord I'm free.)
[ Post Reply | Private Reply | To 45 | View Replies]

To: Alberta's Child

Credit cards are a wonderful tool if you know what you're doing and how to play the game.

I carry credit card debt - usually 0% promotions for a year. Basically, that's free money. I take that money and invest it in mutual funds where I earn interest. When the card starts to charge interest, I pay it back IN FULL.

Oh, I also have another card where I get 5% cash back on groceries, gas, and drug store purchases. I pay that in full every month before any interest is applied.

Sometimes, interest is only 1.6% or 3% promotional for things like balance transfers. It's not hard to earn better than 3% on many investments. Sometimes it's wise to carry credit card debt and let your money work for you.


58 posted on 11/02/2005 6:57:07 AM PST by Darth Gill
[ Post Reply | Private Reply | To 26 | View Replies]

To: Alberta's Child
I hate paying FICA taxes, and I despise those stupid "user taxes" on my telephone bill.

So you only dislike taxes that YOU have to pay, and you like taxes that other people have to pay but you don't.

59 posted on 11/02/2005 6:57:38 AM PST by E. Pluribus Unum (Islam Factoid:After forcing young girls to watch his men execute their fathers, Muhammad raped them.)
[ Post Reply | Private Reply | To 57 | View Replies]

To: finnsheep
" Nor do I think somebody making $200K is middle class."

You're right! Here in the San Francisco Bay Area, you need at least $350-$400K to even approach middle class! A house worth less than $700,00 doesn't exist in this area except in the slums.

60 posted on 11/02/2005 6:58:18 AM PST by Hoof Hearted
[ Post Reply | Private Reply | To 2 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 ... 101-120 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson