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"...it could lead to another housing crisis, just as the last one is (or should be) still fresh in our collective memories. Here’s his thinking (which is hard to refute): Since, generally speaking, one of the largest state taxes is on property—your home—eliminating the federal tax deduction for state property taxes will inevitably cause the cost of homeownership in states with high property taxes to go up. It follows, logically, that if the annual cost of home ownership goes up, then the value of the home—which is for most people their single most-valuable asset—must go down. The National Association of Realtors commissioned a recent study that predicted that the elimination of the deduction for state and local taxes could result in a decrease in home valuations of between 10 percent and 17 percent.
That would wipe out a huge amount of homeowner equity, with the usual expected consequences: the sick feeling that comes from knowing that suddenly you are poorer, which can then lead to lower consumer spending, kicking off a recession. "
"...it could lead to another housing crisis, just as the last one is (or should be) still fresh in our collective memories. Here’s his thinking (which is hard to refute): Since, generally speaking, one of the largest state taxes is on property—your home—eliminating the federal tax deduction for state property taxes will inevitably cause the cost of homeownership in states with high property taxes to go up. It follows, logically, that if the annual cost of home ownership goes up, then the value of the home—which is for most people their single most-valuable asset—must go down. The National Association of Realtors commissioned a recent study that predicted that the elimination of the deduction for state and local taxes could result in a decrease in home valuations of between 10 percent and 17 percent.
That would wipe out a huge amount of homeowner equity, with the usual expected consequences: the sick feeling that comes from knowing that suddenly you are poorer, which can then lead to lower consumer spending, kicking off a recession. "
As someone who reads a lot of studies, I can tell you that you always have to look at who is funding the study. The National Association of Realtors want the study to show dismal results, in an effort to help manipulate public sentiment.
And the fact that this is a Vanity Fair article is also suspect. They are only going to use the statements of the people who bolster their argument, ignoring and/or playing down the arguments of people who contradict their narrative. News sources that are actually considered “news”, are doing this these days, and Vanity Fair is not even held up to THAT standard, so how can you trust this article?
And I’m not even saying that all of this is definitely false. Just that it should be taken with a huge grain of salt.
I find it hard to feel sorry for people who lose a deduction that I am prohibited from taking.
Because of the AMT, I can’t deduct state and local taxes, and haven’t been able to do so for the last two decades.
Let me ask a question of the people who are against removing the state and local deduction.
Would you be for removing the AMT, so everybody could deduct state and local taxes? Or are you for just keeping it like it is so that some people can deduct them while others can’t?
I find it hard to feel sorry for people who lose a deduction that I am prohibited from taking.
Because of the AMT, I can’t deduct state and local taxes, and haven’t been able to do so for the last two decades.
Let me ask a question of the people who are against removing the state and local deduction.
Would you be for removing the AMT, so everybody could deduct state and local taxes? Or are you for just keeping it like it is so that some people can deduct them while others can’t?
Before I retired we got stuck with the AMT about 7 years out of 10 and we were not high income wage earners, I thought it was unfair then and I still think it's unfair.
I'm not asking you to measure within hundreds of an inch so hold off on your dramatics. If a weatherman forecasted significant ran fall he or she would give an estimate of the amount with some basis to support making the call. You can't even quantify the significant impact, or as you said earlier the significant reduction in the number of buyers. It's all overdramatized bs on your part
Not at all. Prices changes are important matters within a market. Removing the home mortgage interest deduction would be to effect a significant and market destabilizing price change. End of story.
Before I retired we got stuck with the AMT about 7 years out of 10 and we were not high income wage earners, I thought it was unfair then and I still think it's unfair.
You make such a high income that you are in the AMT, yet you are NOT 'high income'?
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