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Because owners actually pay real estate taxes, renters do not. There is nothing special about being a renter that requires a tax break. If renters receive a tax break, it is coming from their income taxes, which mean owners should get a real estate tax break and an income tax break commiserate with whatever is given to renters.
I'm not sure why it's any different from a tax break for owners who are paying a mortgage? It's a tax break to subsidize housing costs. Why is only one a "giveaway"?
Bingo!
My thoughts exactly.
As things currently stand, renters actually subsidize homeowners.
Bingo!
As things currently stand, renters actually subsidize homeowners.
lol. Explain that wisdom.
As a working homeowner I pay income tax and real estate taxes. As a renter, I did not pay real estate taxes, which far surpass the NYC income tax unless one makes a huge salary but lives in a small home. You can argue over the landlords you renters hate all you want, but landlords do not make up the majority of homeowners.
What exactly is a renter subsidizing outside of the income tax paid by renters and homeowners alike, that requires a tax break?
Homeowners can not only deduct the interest on their loans but also property taxes as housing-related costs on their federal income tax.
This is a government subsidy to encourage homeownership, but since RE prices in NYC are amongst the nation's highest. Buying a home in NYC is out of reach for most people.
Renters cannot deduct their housing-related costs as homeowners do.
And If I'm not mistaken you purchased your home with a FHA loan, which in case you didn't know is government backed.
In any case I have no problems subsidizing your salary and home loan with my tax dollars.
And don't make it look like you're paying a sh*tload of taxes, you dont live in LI or Westchester, NYC RE taxes are amongst the lowest in the tri-state area
Sure, a tax break for renters can make sense if Cuomo knows that he is cutting state spending somewhere. It all depends on what's done with the budget.
Some state spending is being cut due to federal budgetary cuts.
The entire low interest mortgage market is created by the federal government. The FEDERAL RESERVE keeps interest rates artificially low and keeps easy money available.
Before there was such a thing called the Fed, in order to get a mortgage you had to make a 50% downpayment and pay the loan back within 3 to 5 years. Mortgages were rare then. Most people just paid in CASH when they bought a home. Post World War II, the government created the mortgage market.
Banks package mortgages as securities and sell them as bonds (many purchased by federal agencies). This spreads the risk around, so banks are willing to loan to homeowners.
And If I'm not mistaken you purchased your home with a FHA loan, which in case you didn't know is government backed.
It was, not anymore. I never would have had an FHA loan to begin with if I knew more about the process when I first purchased.
Quote:
Originally Posted by likeminas
In any case I have no problems subsidizing your salary and home loan with my tax dollars.
Completely irrelevant to the conversation. While past experience proves it is likely these types of comments will continue if I attempt to converse with you, I'll refrain from making similar personal comments about you. Not to mention, I make enough to be well above the median NYC income level and pay real estate taxes. It is very likely that I'm paying more of my own salary than you are.
Quote:
Originally Posted by likeminas
And don't make it look like you're paying a sh*tload of taxes, you dont live in LI or Westchester, NYC RE taxes are amongst the lowest in the tri-state area
Long Island and Westchester are only relevant to this conversation in that residents of these municipalities will also subsidize NYC renters if Cuomo forces through a state-wide renter's tax break. My home is extremely low on the value totem-pole for NYC, I've never implied otherwise. That said, my annual real estate tax is still more than the NYC income tax I pay.
Again... homeowners are not receiving a "living expense subsidy", we're getting a return of some of the real estate taxes we pay. If renters see the same it can only be construed as having come from their income tax. Therefore homeowners who file income taxes should receive the same tax break. Otherwise, Cuomo should just be honest and call it what it is: a giveaway.
The entire low interest mortgage market is created by the federal government. The FEDERAL RESERVE keeps interest rates artificially low and keeps easy money available.
Before there was such a thing called the Fed, in order to get a mortgage you had to make a 50% downpayment and pay the loan back within 3 to 5 years. Mortgages were rare then. Most people just paid in CASH when they bought a home. Post World War II, the government created the mortgage market.
Banks package mortgages as securities and sell them as bonds (many purchased by federal agencies). This spreads the risk around, so banks are willing to loan to homeowners.
Mortgages were expanded to swell the pockets of bankers. Regular citizens were much better off when homes were purchased mostly in cash. The annual salary to home price ratio skyrocketed after mortgages become the norm. Unfortunately there's not much a middle class person can do to combat this fact other than to purchase a home well within their affordability range.
I made sure I didn't fall for my real estate agent's BS when I was looking. Based on my salary at the time, he wanted to show me homes well over $100,000 more than the one I purchased. I make far more now than I did then and I highly doubt I'd spend as much as he wanted me to even now.
Mortgages were expanded to swell the pockets of bankers. Regular citizens were much better off when homes were purchased mostly in cash. The annual salary to home price ratio skyrocketed after mortgages become the norm.
Yes--a bit surprised to hear this from you, but I agree.
Re: above point, I wasn't clear. I was thinking of a tax credit for renters as being analogous to the mortgage interest deduction enjoyed by owners. Cuomo is proposing to cut property taxes as part of a political deal to get this renter credit through, and I agree those aren't analogous.
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