Tax deduction for mortgage interest could be on the chopping block

[Texacon]

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x44619

NNN0LHI  (1000+ posts)     

Mon Dec-20-10 12:09 PM
Original message

Tax deduction for mortgage interest could be on the chopping block
 http://www.chicagotribune.com/business/la-fi-mortgage-d...

It's been around since 1913, but its time may be up. Such a change would generate billions of dollars in federal revenue that could be used to cut the deficit while inflicting little pain on most middle-class homeowners.

By Don Lee, Los Angeles Times

December 20, 2010

Reporting from Washington — Fifteen years ago, Carol Nietmann and her husband bought a spacious house in Maryland near Chesapeake Bay. And thanks to the time-honored tax deduction for mortgage interest, she said, their new place was a little bigger and a little nicer than they would otherwise have thought they could afford.

Much the same has been true for millions of Americans up and down the income scale. Perhaps the most sacred of all the sacred cows in the tax code, the home mortgage deduction has long been seen as crucial to a major element of the American dream — owning your own home.

It has also been a boon to home builders, construction workers, the financial services industry and local governments that benefited from fatter real estate tax revenue.

But nearly a century after coming into existence, the mortgage deduction may face a day of reckoning. Although out of the spotlight while the lame-duck Congress thrashes to an end, the mortgage deduction issue is likely to resurface next year when the new Congress — including a lot more deficit-hawk Republicans — takes over.

 

Woooo boy.  Here we go;

montanacowboy (1000+ posts)     

Mon Dec-20-10 12:15 PM
Response to Original message

4. While inflicting LITTLE PAIN????
 
How about $14,000 a year of little Pain? No point in owning a home if this goes away. Renting would be much better deal, let the landlord fix anything that goes wrong, no paying high cost home insurance, no paying property taxes or anything else connected with being an owner.

This will put a final nail in the coffin of home ownership.

 

They are absolutely genious!  Why didn't I think of this.  Instead of owning my home, like an idiot, I could just rent and NEVER PAY FOR THOSE THINGS!

NNN0LHI  (1000+ posts)     

Mon Dec-20-10 12:21 PM
Response to Reply #4

7. Property taxes have put the final nail in the coffin of home ownership for me
 
Edited on Mon Dec-20-10 12:22 PM by NNN0LHI

After I finish paying this house off in a few years the monthly amount I will need to pay for the property taxes alone will be more than my entire mortgage payment was when I bought this house. And that initial mortgage payment used to cover the property taxes, insurance, principle and interest.

Welcome to the club.

Don

'nother genious.

dmallind  (1000+ posts)     

Mon Dec-20-10 12:33 PM
Response to Reply #4

10. Renters pay for all those things and profit too
 
You think the landlord doesn't include his property taxes (in many states higher than owners' unless he homesteads) repairs and insurance etc costs in his cost basis when setting rents?

That's like saying when you rent a car you are not paying for the tires.

Hey!  A DUmmie who gets it!!

Kalyke  (1000+ posts)     

Mon Dec-20-10 01:18 PM
Response to Reply #4

25. Yup... and without those property taxes, where are local
 governments going to get the money to hire cops, fireman and teachers or build roads..

Oh...wait... that might be the point.

I thought they might get it but .... nope.  Back to the idiocy.  Yes folks, if we were ALL renters there would be NO tax money to pay for cops, firemen, teachers or even to build roads.  You heard it right here.

 

KC

[Ralph Wiggum]

DUmmies should not be allowed to discuss taxes or economics unless I have a sufficient amount of time to  and that particular day.

[Karin]

What I don't get with the taxation & economics threads is that, every now and then, someone will post a reply like dmalllind's up there.  Wouldn't the Dummies blush and feel foolish, depositing that info somewhere in their craniums, and try to be smarter next time?  It's called "learning, " all the DUmmy public school teachers get Masters and PhDs in figuring out how that "works." 

 

[Celtic Rose]

Yes, DUmmies, please all start selling your house and flood the market.  Then the evil Repuke landlords can swoop in and buy them low, and rent them right back to you! 

[Ralph Wiggum]

What I don't get with the taxation & economics threads is that, every now and then, someone will post a reply like dmalllind's up there.  Wouldn't the Dummies blush and feel foolish, depositing that info somewhere in their craniums, and try to be smarter next time?  It's called "learning, " all the DUmmy public school teachers get Masters and PhDs in figuring out how that "works." 

 

Because if it doesn't come from Paul Krugman or some other leftist loony economist, it simply can't be true.

[jukin]

Socialist Democrats, lowering your quality of life for over 100 years.

[DumbAss Tanker]

Yes, DUmmies, please all start selling your house and flood the market.  Then the evil Repuke landlords can swoop in and buy them low, and rent them right back to you! 

You have real Evil Overlord/BFEE Crime Family potential, young lady.   

Maybe it has served its purpose and should be sunsetted.  Really wouldn't affect me at this point, I'm paid off enough that I'm not getting anything out of it anymore.  But, with housing still on the ropes and the Opression is still flirting with 10% unemployment, now is not the time to go there.

[Evil_Conservative]

Can I just ask, as a renter, what's the big deal?

Didn't the government just hand out $8,000 to every first time homeowner?  And you could have spent that $8,000 any way you wished?  Wouldn't it have made sense to take that $8,000 and write it to the bank towards INTEREST on the loan?

Excuse me if I sound ignorant, but I just don't care that you can't write off your interest on your mortgage.

[true_blood]

Socialist Democrats, lowering your quality of life for over 100 years.

EPIC! H5.
And the community organizer in the White Mosque is hell bent to keep it going.