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The mortgage tax deduction is the only way many people can afford their house payments. When I was a homeowner it helped me a lot and I never defaulted on my mortgage. If this deduction is taken away, the current housing meltdown will exacerbate and eventually only "the rich" will be able to afford to own a home.
Then they should have taken that into account that a government hand out might go "buh bye", right?
Social security pays for itself through bonds and a specific tax for it, so thats not a "hand out". But a mortgage tax deduction is a hand out, just like other tax deductions, for instance charitable donations.
Deductions come and go. If you didn't budget appropriately, then you made a bad decision and now you are likely to pay for it. Let those that made the right decision win. Thats what the free market is supposed to do. Nothing fair about the free market.
A mortgage interest reduction is not taking money away from ANYONE. It is letting one keep more of their OWN money. It's not the governments to begin with which many fail to understand. If it is done away with then those who own a mortgage pay MORE taxes on their earnings.
They want to continue the stupid wars in Iraq and Afganistan, along with the stupid 'war on drugs' and 'war on terror' - but they feel they have to cut the mortgage tax deduction so that people will have even less of a reason to buy a house, and cut Social Security and Medicare, which we paid for and they raided.
Analysis: Mortgage tax break eyed to help cut debt - Yahoo! Finance (http://finance.yahoo.com/news/Analysis-Mortgage-tax-break-rb-3724808878.html?x=0&sec=topStories&pos=2&asset=&cc ode - broken link)=
I agree, this is not a good time for this. I would only be for eliminating this deduction if it was combined with a total overhaul of the tax code.
The FairTax would simplify everything so much, too bad most people can't see that.
I'm ok with losing the mortgage tax deduction - as long as we also stop giving out credits for simply breeding....being that children are supposedly a "choice".
Then they should have taken that into account that a government hand out might go "buh bye", right?
Social security pays for itself through bonds and a specific tax for it, so thats not a "hand out". But a mortgage tax deduction is a hand out, just like other tax deductions, for instance charitable donations.
Deductions come and go. If you didn't budget appropriately, then you made a bad decision and now you are likely to pay for it. Let those that made the right decision win. Thats what the free market is supposed to do. Nothing fair about the free market.
Tax deductions are not "hand outs". To get a "hand out", money must be taken from one person and given to another. No money changes hands. The homeowner is keeping more of what he/she earned rather than giving it to the government to "hand out" to someone else.
Of course! People who need tax breaks to afford their homes, can't afford accountants to find every tax loophole they can, or work for their money instead of getting money at lower capital gains tax rates (and don't need the break) shouldn't get them.
It's really obvious logic from people representing the working man.
According to your logic, people get tax breaks from their homes while not being able to afford an accountant. Many folks don't know that the "loophole" of the mortgage interest deduction exists without an accountant telling them. Logic fail.
Sorry, but if you need a tax break to afford your home, you have NO business buying. It's just a perk that comes with home ownership (or rather, financing your home).
My opinion is that people will be less likely to buy b/c of the perception of this tax break. It honestly doesn't come up to be that much of a savings. But still, in the days of a sluggish housing market, this is not what we need to be doing.
I'm ok with losing the mortgage tax deduction - as long as we also stop giving out credits for simply breeding....being that children are supposedly a "choice".
You know - that "shared sacrifice" stuff???
A tax credit and a deduction are different things.
I think we should end both also. But a child tax credit doesn't encourage you to have children, it doesn't even come close to paying for 5% of the annual cost of a child. A tax deduction encourages you to buy a home, and often a home you couldn't afford without the deduction.
Tax deductions are not "hand outs". To get a "hand out", money must be taken from one person and given to another. No money changes hands. The homeowner is keeping more of what he/she earned rather than giving it to the government to "hand out" to someone else.
Yes, they are. They handed out money to encourage people to buy a home.
The issue is that many people bought homes that they could not afford without the deduction.
See, its beneficial if you can afford a 70,000 dollar home without the deduction. This gives you a little extra to spend on fixing your home. But if you think "Hum, with the deduction I can afford a 90,000 dollar home", then when the deduction gets removed and you complain, thats a hand out.
No matter what you call it, it is a transfer of capital away from people who don't have expensive mortgages, towards people who do have expensive mortgages.
ALL people with ALL mortgages get it, not just those with jumbo loans.
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