So many industries benefit from the housing boom. Appliances, lumber, shingles, cement, etc. We should be very careful when we trim this back or we could see so really bad results.
It never should have been in the tax code to begin with. It is simply one of the thousands of lines in the tax code designed for social engineering.
If the tax code is to help housing, then we should get a deduction when we buy a car. Oh, of course the wonderful government WILL give us a deduction if we buy the RIGHT kind of car, in their opinion.
Or how about a deduction for the RIGHT kind of golf clubs?
That is a big industry.
How about a deduction for movie tickets as there are thousands of people in hollyweird that depend upon us going to the movies?
This is just a wrong as when the low life bill clinton said in Buffalo, NY that he supposed he could reduce the taxes and HOPE we would do the RIGHT thing with the money.
We need to take back, by any means possible, our government. We don't need them deciding what is the right use of our money and rewarding the little people when they do the right thing.
Bottom line, everything is real estate. Everybody needs a place to live, everybody needs a building to work in. If you are not working in a building, then you are outside harvesting the natural resources to build that house or building. It's amazing when you look at it that way.
This is very true. As a result I'm expecting support for the idea from the Libs. They would support anything that would hurt the economy if it would help them return to power. This would do the trick.
The Real Estate "bubble" is built in part on the deductibility of home mortgage interest. It's been the law for a long time and people have made their budget calculations based on the tax subsidy. You can remove it. You can argue that it would yield a tax system that is more fair. But if you do be prepared for the recession that will follow as real estate values fall, loan defaults increase and ultimately banks begin to fail. The last time this happened the American Tax Payer came to the rescue.
I don't think it's worth it. Stick to the system we've got. It works. Real Estate investments pulled us out of the most recent recession and things are rolling along pretty good right now. I wouldn't mess with it.