Ahead of Convention, GOP Dumps Mortgage Deduction

Political party nominating conventions are expected to present warm, glittery narratives about a presidential candidate and to signal that the country is in full-on election mode.

The media tend to pay far less attention to another party ritual: the adoption of official platforms assembled by a select group of delegates and voted on at the conventions. These are statements of a party’s principles and are often so long—and so generic—that no one save die-hard political wonks pay them much mind.

A dive into wonkland provides a lesson in what a party’s leaders really think about various issues. The GOP platform is already extremely socially conservative. For example, it carries an anti-abortion plank that has no exemptions for rape, incest, or even to save the life of the mother. But in the past week, activists pushing the Republican Party to the right on fiscal matters have been gaining traction.

On Aug. 20, Republican presidential candidate Mitt Romney called for an audit of the Federal Reserve. His announcement is meant to appease Tea Party activists and supporters of Rep. Ron Paul, the Texas Republican who faced off against Romney in the primaries. They have been threatening to mount an insurgency during the convention if Paul’s positions aren’t adopted.

Romney has not been entirely clear where he stands on the issue.

http://www.businessweek.com/articles/20 ... -deduction

Elimination of the mortgage tax deduction isn't a done deal. Both sides of this issue are fighting hard. I am hoping for a deal where any current or new mortgages created before 2014 would keep the deduction. This would inspire people sitting on the fence to make purchases of new & existing homes.

Canada doesn't have this and their home values are higher.

I would rather see mortgage deductions stay in-place for primary residences; but eliminated for second homes/vacation homes. And the deduction could be adjusted to only apply to the first $1million of the primary residence... That way it preserves the middle and lower classes.

Raees wrote:
On Aug. 20, Republican presidential candidate Mitt Romney called for an audit of the Federal Reserve. His announcement is meant to appease Tea Party activists and supporters of Rep. Ron Paul, the Texas Republican who faced off against Romney in the primaries. They have been threatening to mount an insurgency during the convention if Paul’s positions aren’t adopted.

Romney has not been entirely clear where he stands on the issue.

http://www.businessweek.com/articles/20 ... -deduction

So, do you agree, or not agree that we should audit the fed? We get audited every year, as do ever private and public business. Why is the fed exempt?

I'd be ok with getting rid of the mortgage deduction, along with a lot of other deductions, if we went to a flat rate or the fair tax.

It would personally hurt me, but if it went away and we vastly changed the way taxes are paid, it would be worth it for the next generation.

If the mortgage deduction were eliminated, I'm guessing it would only apply to high income earners.

We had something similar with the George H. Bush "read my lips" tax increase where all Schedule A deductions (including mortage interest) started it phase out as income increased (I think the deductions started to get reduced beginning around $160K, but that was around 1990).

The claim in the title that the GOP is dumping the mortgage deduction is not accurate (same with the claim of forbidding abortions due to rape). They simply make no mention of it in their platform. I don't think the Democrats have their 2012 platform yet, but if it makes no mention of forbidding the eating of kittens, I'll be outraged!!

With the current low interest rates, now would be a perfect time to get rid of it. I heard a rate of 2% for a 10 year last night.

My interest expenses don't help me for my primary residence. (I take a standard deduction, and skip itemizing)

However, a good portion of my rental property costs are interest expenses. (it's the biggest single cost)

Try to remove deductability on my rental property costs, you'll see me pitch quite a fit.

bailey bud wrote: My interest expenses don't help me for my primary residence. (I take a standard deduction, and skip itemizing)

However, a good portion of my rental property costs are interest expenses. (it's the biggest single cost)

Try to remove deductability on my rental property costs, you'll see me pitch quite a fit.

If the capital gains tax is doubled and the interest deducton is eliminated, would you ever consider buying another rental property?

absolutely not ----

alas, I don't have a lot of capital gains to worry about, for now.......