[austinite]

This is a bunch of Barbara Streisand. There is no RE bubble, nothing to see here. Move on.

Buy, buy, buy!!!!!!!!

[finnsheep]

I have long wondered why the US taxpayer has to subsidize the person with a million dollar mortgage. Sorry, but I don't think most would call that person middle class.

Nor do I think somebody making $200K is middle class. If somebody making $60K has a million dollar mortgage, they are in deep trouble and won't have the place for long regardless of any tax subsidies.

[Rutles4Ever]

We're from the government and we're here to help.

[son of caesar]

oh boy, the class warfare is about to begin

[thulldud]

Mansell urged reformers to look at the past -- The Tax Reform Act of 1986 proved that when the tax benefits associated with real estate ownership are curtailed, the value of real estate declines. In this case, the resulting loss of value in the commercial real estate sector was 30 percent, he said.

That was the proximate cause of the S&L crackup.

Now they want to do it again.

[demkicker]

I saw this report on the tax recommendations and was VERY UNIMPRESSED. There is no way it will ever get passed. It's either a flat tax or forget it.... As usual, it's too bad they just wasted time and money coming up with this crap.

[dfwright]

simplifying income tax laws

So how exactly does removing the $1M limit on eligible mortgages, and replacing it with "average regional price of housing" limits simplify anything?

[april15Bendovr]

Looks like Fanie Mae has had to do some shifting around to make up for thier big scandal?

http://www.poughkeepsiejournal.com/apps/pbcs.dll/article?AID=/20051102/BUSINESS/511020320/1003

Fannie Mae meets reserve requirement

WASHINGTON — Mortgage giant Fannie Mae has met the government-imposed requirement to boost its reserve cushion against risk to 30 percent surplus capital, federal regulators said Tuesday.

The Office of Federal Housing Enterprise Oversight ordered Fannie Mae to increase its capital reserve following an accounting scandal last year at the government-sponsored company, which is the biggest buyer of home mortgages in the United States. The office said in a statement Tuesday that Fannie Mae had an estimated $9.1 billion capital surplus as of Sept. 30 — giving it an additional $752 million over the required 30 percent surplus.

In recent months, the company has been raising fresh capital by selling off chunks of its portfolio of mortgage investments. Fannie Mae also issued billions of dollars of preferred stock and in January slashed its dividend payout by half, to 26 cents a share.

[Skooz]

Just cut my freaking taxes.

That's all.

Nothing complicated about it.

I pay way too much. I need to pay less. Much less.

Just cut my freaking taxes. Please.

[Mamzelle]

The same tax plan eliminates the Alternative Minium Tax.

[alloysteel]

Because of the growing size of the personal exclusions for income reporting, only about 30% of all taxpayers have been ABLE to claim the "mortgage deduction".

And it always puzzled me why anyone would be motivated to incur $100 in greater liability (for payment of mortgage interest) to save $15, or $25, or $28 on tax payment. Why not shop around for a cheaper mortgage? Or curb your borrowing so you don't HAVE to go into a second mortgage? Pay off the credit card bills you have NOW, even if it means sacrificing a lot of otherwise "discretionary" income.

At the upper end, the mortgage deduction is phased out anyway, so on very large annual gross incomes, it becomes meaningless.

[NYorkerInHouston]

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.

[FreedomSurge]

Repeal of Mortgage Deduction = Depression (not recession).

[Logic n' Reason]

You are correct sir!

Just put my money where my mouth is...bought my third home about a month ago.

I echo your sentiments...."buy, buy, buy"!

(But remember "location, location, location".

[Truth29]

Most of the comments on this thread are debating the merits of the proposals. What is largely missing is the calculus of the political impact of the recommendations. The party in power will receive the brunt of the ire of threatened taxpayers in 2006 and 2008. One poster did mention this effect, but I want to reemphasize it. This report is a great weapon that the Democrats will use against the Administration and the pubbies in Congress. Unless the mortgage deduction issue is disavowed quickly and forcefully, Bush/Rove will have shot themselves somewhere higher than in the foot.

[Old_Mil]

the panel is suggesting eliminating the mortgage interest rate deduction and giving a credit of 15 percent of mortgage interest paid to all homeowners.

Will someone please tell these clowns that moving from a system where all mortgage interest is deductible to one where 15% of mortgage interest is deductible is not an exercise in making tax law simpler?