Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
When renters start paying the same amount in real estate taxes for their cities/counties as do homeowners the OP might have some credibility.
It amazes me how the far left continually cheers lowering the standard of living in the USA while simultaneously screaming about "entitlement reform".
I am not remotely on the left. The mortgage interest deduction, like almost all deductions, should be phased out. There is no legitimate reason the government should be distorting the economics of home ownership.
The tax code is a convoluted mess and it is a mess because Congress is constantly tinkering with our behavior. You should be offended that the government is trying to change what you do via the tax code.
To add to the OP's point though - deductions for dependents should go away. So should deductions for medical expenses.
As for renters - it is a simple fact that the owner of the property they rent pays property taxes, just like homeowners do. So unless you want renters to pay an additional property tax (effectively taxing property multiple times). If the renter lives in an apartment, they are paying a fraction of the property taxes in their rent.
I do and its economically indefensible. It is utterly corrupt . All it does is enrich the banking industry. You cannot even get the horse out of the gate to argue it.
When renters start paying the same amount in real estate taxes for their cities/counties as do homeowners the OP might have some credibility.
It amazes me how the far left continually cheers lowering the standard of living in the USA while simultaneously screaming about "entitlement reform".
Here's a clue for the OP: the rich don't use the mortgate tax deduction, usually it is the middle class uses it.
Most renters do pay the property tax and insurance. Its called "rent", and its generally calculated into the rental cost of a home.
Its why you see all those neat commercials saying "why rent when you can own". What they are forgetting to tell you is, yes, your monthly mortgage payment may be cheaper, the taxes and insurance add additional cost. Most rental home owners take those into consideration when setting the rental value.
Laughable. The ones benefiting the most from mortgage interest rate deductions are the wealthy. You get more in tax breaks if you spend $1,000,000 on a home compared to $250,000 on a home.
I like your original point but you are wrong about a few things. The person who buys a $1M home with a mortgage probably earns enough that their adjusted gross income (AGI) will be high enough that their schedule A deductions lose all or most of their value.
Oh I see another one. That would make it right. Oops, its the financing option that is the deduction, not equity ownership. Great plan. Lets tax people who work and save but give someone who goes into hock a tax break, which does nothing but drive up the real estate prices.
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.
I doubt anyone has bought a house for the interest deduction. It's just kinda gravy for home ownership, which used to be the pride of being American.
Adjustable rate mortgages are what encourages people to buy what they can't afford.
First, it's one of the few tax breaks that actually inure to the benefit of middle class people... you know, the ones who are truly burdened with taxes in this country. The poor pay jack crap, or get "child tax credits" and walk away with checks for thousands every tax day. The rich have special accountants that keep their burden well below that of their minions.
Second, the logic behind the tax break is to encourage homeownership. Everyone knows that neighborhoods are better where there are more owners with vested interest in keeping their homes, yards, and neighborhood up to par. Better neighborhoods = better property tax base = better schools, less crime, etc.
Could we do away with the SECOND property mortgage deduction? Sure. But the primary mortgage deduction is one of the LEAST illogical deductions out there!
Why does government encourage homeownership with one hand and prevent homeownership with the other hand?
Homeowners already get billions of dollars in state and local tax breaks - rental property (where the poor who pay jack crap live) is soaked with billions in extra taxes in many states. That's right, your "better property tax base" is funded largely by landlords and tenants who pay higher property tax rates than your beloved homeowners.
If you want to "promote homeownershuip" than promote it for ALL Americans and quit blocking the working class with obstacles.
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.
This is so revealing of how the radical left thinks. So short term and selfish. Disturbing but then again they are out to destory all in the name of Big Government!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
