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"Brookings Institution senior fellow Alan Mallach stirred the controversy during an October lecture at University of Nevada, Las Vegas, when he supported the commission's plan to reduce, or even eliminate, the tax deduction for homeowners.
He said lower-income households typically aren't able to take advantage of mortgage deductions and end up subsidizing wealthier people who have larger, more expensive homes. It's also a myth that the tax deduction encourages renters to buy homes."
The plan is to lower the tax rates 10% in each bracket. For a renter such as myself that is awesome.
unfortunately, as renters we have very little clout.
this interest deduction is basically a subsidy towards people who have huge mortgages in expensive, high-ownership locations like Nevada, Arizona, California and New Jersey.
unfortunately, as renters we have very little clout.
this interest deduction is basically a subsidy towards people who have huge mortgages in expensive, high-ownership locations like Nevada, Arizona, California and New Jersey.
Give it a rest. It's a deduction available to anyone who has a mortgage, not just wealthy people with expensive mortgages in high ownership locations whatever that means.
I know plenty of "no-so-rich" people that take advantage of the mortgage deduction.
You are more than welcome to join the ranks of home owners who enjoy this deduction. Nobody but yourself is stopping you from staying a renter.
"Brookings Institution senior fellow Alan Mallach stirred the controversy during an October lecture at University of Nevada, Las Vegas, when he supported the commission's plan to reduce, or even eliminate, the tax deduction for homeowners.
He said lower-income households typically aren't able to take advantage of mortgage deductions and end up subsidizing wealthier people who have larger, more expensive homes. It's also a myth that the tax deduction encourages renters to buy homes."
Why not eliminate it, why not just raise everyone's taxes thru the roof to pay for the reckless and irresponsible bills the congress passes and their runaway spending habits, and their non-oversight of the banking and insurance industry?
How about we taxpayer keep what little money the government allows us to currently keep, and the policy makers start cutting funds to non essential and frivolous federal programs and agencies??? After they gut the budgets and personnel or even or cancel agencies like the NEA, federal education, EPA, and the bazillions of redundant social welfare and out reach programs etc... then they can start turning some more agencies over to the private sector, or return power back the the states. Raising our taxes more should not even be on the radar screen.
unfortunately, as renters we have very little clout.
this interest deduction is basically a subsidy towards people who have huge mortgages in expensive, high-ownership locations like Nevada, Arizona, California and New Jersey.
I disagree. It incentivizes home ownership. While people don't just say "Let's buy a house so we can write the interest off our taxes," it is an incentive to help offset the costs of owning a home. Said costs include property taxes, hazard insurance, home repairs, HOA fees, not to mention the actual mortgage itself (P&I) and PMI if you're at less than 80% LTV.
If people, regardless of class, want this write-off, they can save up a down payment, keep their credit good and purchase a home that is affordable for them. In many cases, a mortgage payment is about what a rent payment would be for a comparable home. The caveat is that you're responsible for upkeep.
I don't see any reason why the mortgage interest deduction should go away, and I doubt it will go away anytime soon.
Special tax breaks for favored groups cost roughly $1 trillion a year. The MID is one of those.
In the draft put out by the deficit cutting commission the idea is to eliminate all the special tax breaks, and that would enable the marginal income tax rates to come down substantially. For instance, under one option of the plan, which I'll link to at the bottom, the income tax rates would fall to three brackets of 8%, 14%, and 23% , with the corporate rate falling to 26%.
I think the whole plan is a great idea. I don't like all the special breaks that give groups that have lots of lobbyists a leg up on everyone else, and that distort the economy and make the tax system ridiculously inefficient.
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