Mortgage Interest Deduction on Chopping Block (real estate, property tax, income, credit card)

[cohdane]

They seeded the idea over the last two years. Now, it's an "emergency," so they officially begin to "reform, not eliminate" it. Death by a thousand cuts. By 2020, the mortgage interest deduction will not exist. Direct quote from the "Gang of Six" plan:

"Reform, not eliminate, tax expenditures for health, charitable giving, homeownership, and retirement, and retain support for low-income workers and families."

Chalk up another record bonus for Wall Street.

[aneftp]

Originally Posted by cohdane

They seeded the idea over the last two years. Now, it's an "emergency," so they officially begin to "reform, not eliminate" it. Death by a thousand cuts. By 2020, the mortgage interest deduction will not exist. Direct quote from the "Gang of Six" plan:

"Reform, not eliminate, tax expenditures for health, charitable giving, homeownership, and retirement, and retain support for low-income workers and families."

Chalk up another record bonus for Wall Street.

Won't ever happen in this current generation. Better chance for healthcare law getting repealed than mortgage interest deduction getting axed.

Absolute political suicide.

If it's even on the radar it won't take effect for another 20 years so current generation of homeowners would be grandfathered in.

[BuffaloTransplant]

Know what? lots of us out here in the world actually paid off our mortgages and get no deduction (I get my property taxes, that's it). Even my 33 yr. old daughter paid her house in 11 years, not the 30 year mortgage.

They cut out credit card income in the 1980s and people still overbuy and pay the interest... you think people will stop overbuying if the mortgage interest credit is gone?

Pay your mortgage sooner.

[manderly6]

First, I'll believe it when it happens. Second, if it takes that long I'll have my house paid off already anyway.

[chicagojlo]

Won't matter to us as we bought a house that was so within our means that we'll probably still be taking the standard deduction.

I do have to wonder how many of these proposed cuts could be eliminated if they just scrapped the Bush tax cuts.

[manderly6]

Originally Posted by chicagojlo

I do have to wonder how many of these proposed cuts could be eliminated if they just scrapped the Bush tax cuts.

Or you know, just spend less.

[noexcuseforignorance]

As much as I like the deduction, it leads to things that put the economy at risk. In many ways, the deduction means that you should never pay down your mortgage. It also makes it more advantageous to get more house than you need. Getting rid of the deduction would help to reduce the amount of real estate speculation going on.

The deduction is also regressive. Rich people are far more likely to take advantage of the deduction than poor people.

[Flat2MT]

Eliminate the income tax, implement the Fair Tax and you eliminate the mortgage interest deduction.

Explain to me how spending a $1 today in mortage interest payments while getting 30 cents back tomorrow makes any sense.....

[MikeJaquish]

Originally Posted by Flat2MT

Eliminate the income tax, implement the Fair Tax and you eliminate the mortgage interest deduction.

The answer ANY self-employed person, small business, or "anti-loophole tool" should embrace.

Door #1. I'm with you on this one.

Originally Posted by Flat2MT

Explain to me how spending a $1 today in mortage interest payments while getting 30 cents back tomorrow makes any sense.....

Lemme see....
I have a couple more choices....

Door #2. I can spend $1.00 today on interest, and get $.30 back tomorrow

Or,

Door #3. I can spend $1.00 today on interest and get $0.00 back tomorrow.

Well, Monty, I'll take what's behind Door #1.

[chet everett]

When I think chopping block I think FRESH., the "meat" of this has a shelf life that won't last longer than any congressional term!

It'll get tossed because it's rotten.