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YOU are NOT PAYING TAXES. Enough with that nonsense. Until you receive a tax bill from the tax collector's office with your name on it, you aren't paying taxes.
You are paying RENT. The landlord is not paying your taxes "for you" by your paying rent. Especially when that landlord is turning around and writing off his own property taxes on the property you rent as a "business expense." The government has no recourse against YOU if you do not pay your rent. Only the landlord. However, if the landlord doesn't pay property taxes, the government has recourse against HIM.
If there were ZERO taxes on property, you would very likely STILL be paying the same thing for rent, especially if you live in a high-rent area, which indicates a high demand for properties!
Cause all his expenses plus whatever profit he wants to make is already built in. Are you this dense?
Wendy's, WAWA, Outback, Mc Donald's etc... all pay property taxes, commercial property taxes...
Now where do they get the money to pay those taxes?
How many billions does this stupid tax break cost the government per year? On top of that, it does nothing except encourage people to take out more debt than they can really afford and drives up housing prices. People should quit feeling entitled to free government handouts on their mortgages. Want to lower the deficit? Get rid of this illogical tax break.
When a person pays interest they are generating a profit for the lender who pays taxes on it. Dropping the interest deduction is double taxing the same dollars. Why do you call it a cost to the government? The biggest "COST" to the government is their addiction to spending. Stop taxing us and start firing spendthrift politicians.
I manage to stay on the lowest rung of the fed tax scale (only because I own a new business that's just coming out of the red), yet I still paid nearly 30% in taxes. One machine for my business cost $12k and that sent $1300 to the state of California to be squandered.
Why are you assuming that people who own homes have more money? That's a complete lie. I don't make a lot of money, but I budget what I have because home ownership is a priority for me. My mom owned a home her whole working life, when she had VERY little money. Now, thanks to an inheritance and smart retirement saving, she's quite comfortable. She sold her home and now rents. It's a lifestyle choice for her.
You are renting by YOUR choice. I know, I'll hear all kinds of excuses about why you can't buy a home. But it's all excuses. If it was important to you, you'd do it.
Your Mileage May Vary, but homeowners have always had higher MEDIAN INCOME and MUCH HIGHER MEDIAN NET WORTH than renters.
In the 1980s, median renter income was approx 60 percent of median homeowner income. By 2000, median renter income had fallen to 40 percent of median homeowner income.
There are always individual differences and outliers, e.g. poor retirees struggling to pay property taxes. And state and local governments often make special accommodations for these HOMEOWNERS (but not for renters).
For example, a number of states have property tax rebates for homeowners and/or property tax exemptions for homeowners over 65, or property tax deferrals for homeowners over 65.
If you earned $10K-$15K a year and you had student loan debt, would you be able to buy a home?
And, he obviously doesn't understand that home ownership is a good thing, which is why the mortgage interest deduction (to encourage home ownership).
Haven't the Democrats always claimed to believe in home ownership? So, now they want to eliminate that deduction?
Because home ownership is a good thing for many people, they will continue to buy homes even without a tax deduction. They may spend a bit less to do so.
I see no reason though for the government to create additional incentives for home ownership.
Here's the part that you're just a little off on ... you've got the right idea .. and you have some good insights (much more so than the average) .... but the actual interest rates and the adjustable rate financing schemes were simply a means to enroll more unqualified buyers into the scam. It was a relaxation of the qualifying income to increase the volume of buyers ... those sub prime rates were instituted to get these people into these inflated properties now, knowing full well that they were destined to default. The banks were literally betting on the defaults.
I agree that adding the volume of buyers was also part of the ponzi scam. However it still qualifies as a scam without sub prime buyers to provoke a bidding war fueled with easy credit. In short, its all the above.
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The inflation of property values were purposely caused by the banks because they set the property values based on how much they are willing to loan on any given piece of property .... that defines the value ... not consumer perceptions ... not ability to pay ... not the interest rates ... just the bank's appraised value. The interest rates contribute to increases in property values only to the extent that the lower rates allows more people to qualify ... altering the supply-demand ratios. But at the end of the day, no matter how many buyers you have, most are not in the position to pay cash .. most have to finance, and the bank dictates how much they are willing to loan. The lower interest rates simply allows the banks to inflate the property values to maximum levels while still finding warm bodies to sign up.
That is why the so called liar loans. It was seen as superfluous since homes were self financing. What it did was confiscate the economic surplus, shifting it to real estate and finance. In fact the wage ratios without the ponzi scheme would put the worker below subsistence.
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This sets a buying frenzy too .. as the purchase appears to be a great investment opportunity ... because I guarantee you, when housing is going up rapidly, people come out of the woodwork to jump on the bandwagon ... but, it all depends on timing ... those getting in on the tail end of the bubble are the ones left holding the bag.
So it's easy for the banks to create these bubbles. There are plenty of renters out there who dream of owning their own home, and existing home owners always ready to upgrade to a larger home when they see their property values climbing rapidly. It's a trap ... and it starts with the increased flow and slashed discount rates for money from the FED to these mortgage banks.
Ideally, property values would only increase by a margin which reflects increases in buyer incomes and general inflation ... that's a market driven situation, and one that can sustain itself without fear of collapse. But when the banks start flooding the market with cheap money ... that is what creates the artificial bubble, and it is done so purposely in order to burst it purposely, later.
Market driven....Imagine that.
What people think modern banks are doing:
Person has an economic surplus he does not wish to spend, aka save, aka grant credit. So he sends his credit token(money) to a credit wholesaler we call a bank. Bank then loans out those tokens so that the surplus is made available to use. In other words, the available credit is linked with the available surplus reported by the entire society. Someone who doesn't want those carrots saves and circulates a coin that someone else will use for said carrots. Credit is limited to what the public provides. Fawns, and unicorns...
Reality: Banks speculate on the worth of a property. The number they arrive to will be offered up for a loan with the property serving as collateral, making a nice cozy loop. The money is not full reserve so it just makes a loop-da loop. Reserves don't matter because its fed back into the system. Banks make "loans"( create credit out of thin air) based up their speculations with no real market feed back.
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It's economic "farming", which literally sucks wealth out of the productive segment, into the money changers hands who do nothing but develop these schemes for that express purpose.
Its really lost. People are just too simple minded. All they talk about is federal deficits when 27 trillion in thin air was created in the housing bubble at comparatively high interest rates. 27 trillion in real debt to finance with money created out of nothing. Their compensation of interest is for their "service and risk". Too bad their speculations are of no value and they take no risk with either collateral or bailouts.
I agree that adding the volume of buyers was also part of the ponzi scam. However it still qualifies as a scam without sub prime buyers to provoke a bidding war fueled with easy credit. In short, its all the above.
That is why the so called liar loans. It was seen as superfluous since homes were self financing. What it did was confiscate the economic surplus, shifting it to real estate and finance. In fact the wage ratios without the ponzi scheme would put the worker below subsistence.
Market driven....Imagine that.
What people think modern banks are doing:
Person has an economic surplus he does not wish to spend, aka save, aka grant credit. So he sends his credit token(money) to a credit wholesaler we call a bank. Bank then loans out those tokens so that the surplus is made available to use. In other words, the available credit is linked with the available surplus reported by the entire society. Someone who doesn't want those carrots saves and circulates a coin that someone else will use for said carrots. Credit is limited to what the public provides. Fawns, and unicorns...
Reality: Banks speculate on the worth of a property. The number they arrive to will be offered up for a loan with the property serving as collateral, making a nice cozy loop. The money is not full reserve so it just makes a loop-da loop. Reserves don't matter because its fed back into the system. Banks make "loans"( create credit out of thin air) based up their speculations with no real market feed back.
Its really lost. People are just too simple minded. All they talk about is federal deficits when 27 trillion in thin air was created in the housing bubble at comparatively high interest rates. 27 trillion in real debt to finance with money created out of nothing. Their compensation of interest is for their "service and risk". Too bad their speculations are of no value and they take no risk with either collateral or bailouts.
"In fact the wage ratios without the ponzi scheme would put the worker below subsistence"
Yep, that's been a big problem for years now.
As for the rest of what you and Guy NTexas said, yep, it's one big scam the whole "economy". And in the near future they're going to collect. Or create their one world new monetary unit. In the mean time some are getting cold feet. They want to keep this a gradual collapse because they know the civil unrest they might cause. Some other factions don't care. They're ready for the STHTF whenever. Tired of waiting. Nevertheless, mathematically, they'll get their wish because it's impossible to keep this system going for the indefinite future.
Simply mathematically not possible. And they're well aware of that. They're just figuring the best way to bring it down. You have the group who want demolition and other's who want slow erosion.
Report yesterday was that representatives of six major New York Banks have been meeting in secret for months under anonymous identities to discuss what to do with the derivative markets periodically/weekly.
Europe is going under probably this year. Then we're next.
Report yesterday was that representatives of six major New York Banks have been meeting in secret for months under anonymous identities to discuss what to do with the derivative markets periodically/weekly.
Europe is going under probably this year. Then we're next.
Hold on to your seats. It might get bumpy.
Land (with a water source), non-gmo seeds/food sources and bullets/guns will be an even hotter investment over the coming years.
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Originally Posted by gwynedd1
Its really lost. People are just too simple minded. All they talk about is federal deficits when 27 trillion in thin air was created in the housing bubble at comparatively high interest rates. 27 trillion in real debt to finance with money created out of nothing. Their compensation of interest is for their "service and risk". Too bad their speculations are of no value and they take no risk with either collateral or bailouts.
It's gonna be harsh when the world is forced into a complete reset. I get the feeling that a one currency world isn't the fable it once was.
[quote=steven_h;23934391]When a person pays interest they are generating a profit for the lender who pays taxes on it. Dropping the interest deduction is double taxing the same dollars. Why do you call it a cost to the government?
quote]
Dropping the interest deduction is double taxing?
You could make that same argument for credit card interest and auto loans, why should taxpayers foot the bill because you choose to pay interest on something you didn't have enough money to purchase outright.
They actually did allow credit card interest as a deduction back in the 1980's until they regained their senses.
Allowing mortgage interest deductions inflates the price of a home.
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