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?

[Pawnmower]

Typical small brain thinking....this would be like looking at the economy, asking what we could do to make it better , and focusing on the price of Pez dispensers.


The tax code as a whole is a bloated mess....why start with THAT particular bit of code?

I mean, I realize you will never be competent enough to own a home but why hate on successful people?

[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.

[Rain Man]

Originally Posted by RaiderH8r

Then make those accounts individual accounts and be done with it. If people truly are "getting out what they put in" then just put it in each person's name.

That'd be awesome. However, as I mentioned there's some social engineering where they take money from the wealthier people's accounts and put it in the poor people's accounts, so I think they wouldn't want to make each account individual.

Interestingly, we do get "account statements" every year showing us our expected income from Social Security, so one could almost believe that we have individual accounts. They just don't correlate to what we put in.

[Rain Man]

Originally Posted by Brock

You think there's 40 percent profit in building a house? Maybe in some places where things are artificially more expensive like California. It definitely doesn't hold true here. Gross profit of 20 percent is a vain hope around here.

I don't know if it's 40 percent or not. I was just throwing out a number. But I have a hard time believing that prices aren't inflated as a result of the deduction. Imagine what would happen to house prices if the mortgage deduction was eliminated. I have to think that they would go down, which kind of implies that they're higher because of the deduction. At least, I think that's sound logic.

I'm not really sure how it relates to new construction versus the sale of existing homes. I have this inkling that homeowners got a big boost in their home value when the deduction was created, though. All of a sudden people could buy your home for a significantly lower monthly payment; that's got to have a payoff for you.

I have no idea when the deduction was created, though.

[Pawnmower]

Originally Posted by Rain Man

I have no idea when the deduction was created, though.

1913 I believe, same as all of the other interest deductions

[BWillie]

I will fight someone if they take mortgage interest deduction away. Waahhhhh but poor ppl dont own houses not fair. Wahhhh. As someone said, the tax ccode is complicated because life is complicated.

[BWillie]

So when they get rid of the mortgage interest deduction are they going to waive my property tax too? Taxing someone for owning something makes no sense to me. I can't wait for new taxes to come up. Golf club tax, 65 inch tv property tax, food ownership in cupboards tax

[J Diddy]

Originally Posted by BWillie007

I will fight someone (because i have the maturity of an 18 year old )if they take mortgage interest deduction away. Waahhhhh but poor ppl dont own houses not fair(because I'm better than somebody, because I think I am). Wahhhh. As someone said, the tax ccode is complicated because life is complicated.(Because I'm going to ignore taxes that effect someone else, but I'll fight someone if they affect me.)

I broke your message down

[Superbowltrashcan]

While almost a couple years old, I found it interesting how the writer of this op-Ed piece framed getting rid of it. It is all over the place, but has some salient points in there.... I think?

http://www.cnn.com/2010/OPINION/12/0...eak/index.html

[Superbowltrashcan]

Originally Posted by Pawnmower

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.

I have read several flat tax consumption tax books and studies, could you elaborate on what model you support? Is it possible or even a viable concern to be worried about secondary/black markets as a means of avoiding a consumption tax? And do you view usage, purchase, and consumption equally in your model?

[RaiderH8r]

Originally Posted by Rain Man

That'd be awesome. However, as I mentioned there's some social engineering where they take money from the wealthier people's accounts and put it in the poor people's accounts, so I think they wouldn't want to make each account individual.

Interestingly, we do get "account statements" every year showing us our expected income from Social Security, so one could almost believe that we have individual accounts. They just don't correlate to what we put in.

Well then it never truly was "theirs". If they take out more or less than they put in then someone is getting robbed and someone is stealing.

[Brock]

Originally Posted by Rain Man

I'm not really sure how it relates to new construction versus the sale of existing homes. I have this inkling that homeowners got a big boost in their home value when the deduction was created, though. All of a sudden people could buy your home for a significantly lower monthly payment; that's got to have a payoff for you.

I have no idea when the deduction was created, though.

New construction prices have a very obvious effect on existing home prices.

[La literatura]

More than half of respondents have selected the option that would entirely get rid of it with nothing to replace it. Is that because those people want an entirely different tax system (consumption or flat)? I suppose I should have clarified "Please assume that we will not have a revolution in tax systems."

[DoucheMcCloud]

Taking away the interest mortgage deduction would do irreparable harm to an already weakened industry.

[Trivers]

Originally Posted by Swanman

As funny as it sounds, the flat tax would be regressive for the working poor. It has to be with people at very low income levels spending a large portion of their income on bare necessities. If the flat tax kicks in after a certain low income level, I would be on board.

www.fairtax.org

But will never happen for a while.

Progressive moment is still too strong. Social engineering approval ratings are too high.

I expect after next financial collapse that other tax options may be explored.