Home Mortgage Interest Deduction

[La literatura]

Would it be better to get rid of the mortgage interest deduction and replace it with a lowered rate deduction?

[KC native]

Our tax system needs a dramatic simplification.

Retain the structure while eliminating all credits and deductions (obviously the lowest amount where taxes kick in would have to be raised).

This would eliminate massive costs associated with tax compliance and IRS collections and administration.

[La literatura]

Originally Posted by KC native

Our tax system needs a dramatic simplification.

Retain the structure while eliminating all credits and deductions (obviously the lowest amount where taxes kick in would have to be raised).

This would eliminate massive costs associated with tax compliance and IRS collections and administration.

Life is complicated. We need a complicated tax code to go with it. But if we did get rid of all credits and deductions, what would you think a good tax rate schedule would be?

[KC native]

Originally Posted by Literature

Life is complicated. We need a complicated tax code to go with it. But if we did get rid of all credits and deductions, what would you think a good tax rate schedule would be?

No we don't need it to be complicated. We should not be using the tax code to modify behavior.

I don't know what the exact rates should be, but if all the nonsense were thrown out the statutory rates would be significantly lower than what they are today.

[Chiefshrink]

Just ask yourself why is this being touted at all and who is supporting this move and then you will be able to put 2+2 together

[Trivers]

Originally Posted by Chiefshrink

Just ask yourself why is this being touted at all and who is supporting this move and then you will be able to put 2+2 together

maybe the ones that see the fiscal train wreck coming?

[Saul Good]

Originally Posted by Literature

Life is complicated. We need a complicated tax code to go with it. But if we did get rid of all credits and deductions, what would you think a good tax rate schedule would be?

Life isn't fair. We need a really unfair tax code to go along with it.

[La literatura]

Originally Posted by Saul Badguy

Life isn't fair. We need a really unfair tax code to go along with it.

We need a tax code that follows life. The tax code currently just follows business innovations.

[Saul Good]

Originally Posted by Literature

We need a tax code that follows life. The tax code currently just follows business innovations.

Is this true of all laws, or is it a phenomenon unique to the tax code?

[HonestChieffan]

Originally Posted by Literature

We need a tax code that follows life. The tax code currently just follows business innovations.

Good. More proof you are a complete moron. A tax code that follows life. This has potential.

[Pawnmower]

Originally Posted by Literature

We need a tax code that follows life.

I actually agree...and furthermore I have done research and plenty of thinking on this.....The only way to accomplish this fairly is to abolish income tax altogether....We do not want to punish people for investing or saving or making money...

What we have to do is tax based on CONSUMPTION.

You want a 'life' following tax, there you go.


If you want to live like you are rich: consume more & pay more tax

If you want to live frugally and help society: consume less, recycle,buy used goods and get rewarded with less taxes.

No loopholes.

[Deberg_1990]

Originally Posted by KC native

Our tax system needs a dramatic simplification.

Retain the structure while eliminating all credits and deductions (obviously the lowest amount where taxes kick in would have to be raised).

This would eliminate massive costs associated with tax compliance and IRS collections and administration.

Exactly why it will never happen. Simplifying taxs would not require the IRS or as large a system. The governments doesn't get rid of jobs that easily.

[AndChiefs]

Originally Posted by Deberg_1990

Exactly why it will never happen. Simplifying taxs would not require the IRS or as large a system. The governments doesn't get rid of jobs that easily.

It would also raise the unemployment rate. Why do all of you hate American workers?

[Rain Man]

By 'lowered rate deduction', do you mean a lower rate in general? Or is this some other term that I don't understand?

The mortgage rate deduction is flawed in that it provides a bigger benefit to those who are more affluent and it encourages people to buy more home than they need, which has all sorts of other implications. It would be better to have a lower rate, but I have no idea how you put that genie back in the bottle. Phasing out the home mortgage deduction would be very difficult and it would damage a lot of households. I don't know how you could even do it from a realistic perspective.

[La literatura]

Originally Posted by Rain Man

By 'lowered rate deduction', do you mean a lower rate in general? Or is this some other term that I don't understand?

The mortgage rate deduction is flawed in that it provides a bigger benefit to those who are more affluent and it encourages people to buy more home than they need, which has all sorts of other implications. It would be better to have a lower rate, but I have no idea how you put that genie back in the bottle. Phasing out the home mortgage deduction would be very difficult and it would damage a lot of households. I don't know how you could even do it from a realistic perspective.

I was thinking something like "Homeowners with existing mortgage, check box" and check box provides a certain percentage rate deduction on gross income. Not sure what a good percentage would be. I'll throw out 2%, and people can tell me about that.