Is there ANY good reason for not taxing mortgage interest?

[Marv101]

Actually, you'd have to make mortgage payments on your house every single month for twenty-one years in order to own HALF of your house.

You could also pay an extra $100.00 per month and knock several years from your payoff time.

[RaucousRick]

Originally Posted by Frank DeForrest

Stockholm syndrome at work;"why isn't xyz taxed?" rather than "why are we being taxed on xyz?"

My reflex reaction was lets create a rent deduction. It would have to be capped of course. How about 5% of your annual rent is deductible?

[Rosinante]

Originally Posted by Bruin Rick

I have never figured out why we have that tax break although I will be the first to admit to taking it. But what is the reason for having it? I think it should be phased out just as credit card and loan interest deductions were. People who have a mortgage now on their primary residence can keep it but when the home is sold again, no deduction for a new mortgage. And it should be ended for all second homes now. In fact I think all the deductions should be eliminated and rates lowered for everybody under a certain income.

Agreed!

Everyone making less than $100K per year should pay NO tax.

People who make more than that should be taking in the homeless, providing health care, free cars, food, and clothing to everyone.

[Katarina Witt]

Originally Posted by Bruin Rick

OK then why don't renters get it?

Also, in a few states, you can file to get some of your rent money back in lieu of the mortgage interst deduction.

[Goodnight]

Originally Posted by Smoke_Jaguar4

So lets hear your idea on how the government should collect taxes and enforce the tax code. Voluntary contributions? The honor system? Pass the hat?

I don't know about taxing debt but they shouldn't be promoting it, that was a big issue with the credit card interest deduction when people ran huge balances (more than today).

We have one of the lowest savings rate of any nation, interest deductions are the last thing we need. Unfortunately the real estate industry is a huge lobby.

[freemkt]

Originally Posted by RCCCB

Not really, how much interest a year against income do people here think some write off?
The expectations of savings inferred in this thread seem out of proportion with reality IMO.

Maybe think of how many more foreclosures would be coming without little tax breaks like this.

That is exactly how I perceive the problem: Homeowners overestimate the value of the tax break, causing them to irrationally bid home prices higher than they should.

[waterboy7375]

Originally Posted by Rosinante

Agreed!

Everyone making less than $100K per year should pay NO tax.

People who make more than that should be taking in the homeless, providing health care, free cars, food, and clothing to everyone.

So a guy making $99,999 gets a total walk and a guy making $100,000 should be poor folks personal salvation?

[Bideshi]

Government encourages home ownership so they can tax you and have something to take if you get out of line.