PatriotsReign

Or it will take us decades to recover.

Besides, it be incredibly unfair.

Why?

Because home prices would come down as soon as the deduction was scrubbed from "write-off" status.

So those who already own homes would screwed because they not only would be stuck with their current mortgages, but would also lose value on their homes.

That doesn't even address how this would kill any housing recovery which drives much of our economy.

Fiscal battle over mortgage deduction

Hands off the mortgage interest tax deduction - Nov. 27, 2012

If we really want to add jobs, this would be the most foolish move our elected officials could make. I can see capping it at a certain level so people who buy $3 million homes would be limitted in how much could written off.

But if this deduction were to be eliminated, all hell would break loose economically. I would suggest they go back to the drawing board.

Finally, wouldn't such a move break Obama's promise of not raising taxes on the middle class?

Yes, of course it would.

IcyPatriot

Well I'm pretty sure it is going to be phased out real slow. However ... home prices will reflect who gets what deductions ... the market always corrects itself ... always does.

PatriotsReign

Sure it does....but the market will reflect lower home prices if we get rid of the MID. And we don't want home prices to go down.

Again, Obama promised he wouldn't raise taxes on the middle class and if they eliminate this one, he won't be keeping his promise.

It would end up being an ok deal for new buyers while current/recent buyers would be getting the shaft.

IcyPatriot

It will get phased out slowly ...

That said I think single people making over 50K and families making over 100K should all pitch in something in new revenue as long as there are matching deductions from spending. After that those numbers should go down to the point that almost everyone except for impoverished, handicapped and retired pay more ... even if it's but 1% more. I do not believe the rich should be the only ones paying more in financing this country.

363839

Let's see, I am at about 50k a year. Got my house at the worse possible time, just before the crash. My interest went up from 3 to 8.5
Now I cannot even get cash for renovations that are badly needed because I am so up against it with my mortgage which had risen about 400 bucks per month.
And Icy thinks I should give up the very little solace I get from this mess to help the government out of the mess they themselves created.
No thank you!

RI Patriots fan

Why on earth anyone would take out anything other than a fixed rate mortgage is beyond me. The only way it makes sense would be if you knew you were moving in a short period of time and you knew you could sell it.

363839

I took a chance and it kicked me in the butt. I really didn't think my mortgage would go up as much as it did.
I really didn't understand what I was doing. All I know was that at the time I bought, everybody was telling me how great an investment it is and how I will love having my own house. I really should have stuck with apartment life but now that I have the house, I intend to hold on as long as I can and hopefully, in the near future, I can get some cash to get this mortgage down to a roar.

wistahpatsfan

Sorry to hear that, but them's da breaks. You gambled big-time and lost. I had a variable on an income property and when the fixed ran out, it was pretty much a wash. Then I unloaded it at near peak of market. I gambled and won (for once). Two stories...different outcomes.

I think the deduction on mortgage interest is grossly unfair- which I gladly use- but if you get to deduct interest on one loan, why not all loans? It will and should be eliminated, unless, of course, all interest on all loans are included.

Another deduction that's unfair is the child deduction. I use it also, but it places an undo burden on people who don't want or can't have kids.

Social security should also be taken out of all pay regardless of how much one earns.

Income tax should be abolished and the IRS...

Oh...never mind.

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363839

Oh I don't think all is lost yet. I will have to have a few years of substandard living as I have been doing for the last couple of years or so.
I have already a decade so if I can hold out at least until more of my payment goes to principle and perhaps may even take a loan out from 401k...we'll see.
You want to equalize housing interest deductions to other loan deductions. I disagree. I am not positive about this but I am pretty sure the deduction was implemented to help the housing industry. This industry still needs help...probably more than ever before.
Student loan...that's such a mess I will give you that but other loans such as personal loans for vacations or loans for second homes then no, they should not have deductions from interest and even loans for renovations should not get them.
What other loans do you feel should get tax deductions for interest like the home interest deduction?

wistahpatsfan

Your preference for the home interest deduction is understandable, but it colors your rationale. Of course it is designed to boost the real estate market. Who are the biggest players in that market? Banks. They get their interest no matter what. How does that incentivise anyone other than bankers, and real estate agents who get comission from each new sale. OK. That's great if you're a banker or a realtor. Who else?

You don't think other sectors should be incentivised? Why not? What about building trades? The interest on loans for home improvement and additions shouldn't be deductible? Why not? Vacations and cars? Don't a lot of people make their livings off of those sectors?

I'm not saying any of these sectors should get interest exemptions. I'm saying either all or none. It's discriminatory. It's also social engineering. Maybe the selling of the American Dream is not a good thing? Maybe it's just a marketing ploy because our economy has been shifted away from manufacturing into service. I don't know, but lots and LOTS of people raised families and lived and died in three-deckers and apartments. They had jobs and families. It was not discouraged but an option.

What do you think about the child deduction? Is that fair to childless people? THe same goes for any other deduction.

Don't even get me started on how corporations use the deduction menu to keep from paying the taxes they should.

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