Sure can it as long as all the extra money coming in goes directly to paying down the national debt and we freeze the budget. I need to live on a budget, our government ought to as well.
I'm not for getting rid of the mortgage deduction because tax and spend liberals will just see it as another revenue source that needs to be spent. Anytime the US taxpayer gets to keep a larger chunk of their hard earned dollars and not have the government legally confiscate(steal) it, that is a good thing.
Joe wrote: I wouldn't miss it myself. House is paid for....
Well, there you have it... Another conservative who wouldn't miss it because it doesn't apply to them. "I've got mine...Screw you."
Another reminder of the "Party of Selfish"....
Well thanks LJ and Happy Festivus to you too!
If you read my first post again, I was asking for what others think too, as well as what effects it would have on the overall economy. I do and have paid interest, just not enough for an itemized deduction.
Also a reduction in tax rates makes up for the some or all of the loss deductions for many. Lower rates may have positive economic effects, while losing the deduction may hurt housing.
Selfishly yours,
Joe
If you want to be, press one. If you want not to be, press 2
Republicans are red, democrats are blue, neither of them, gives a flip about you.
Joe wrote: I wouldn't miss it myself. House is paid for....
Well, there you have it... Another conservative who wouldn't miss it because it doesn't apply to them. "I've got mine...Screw you."
Another reminder of the "Party of Selfish"....
Well thanks LJ and Happy Festivus to you too!
If you read my first post again, I was asking for what others think too, as well as what effects it would have on the overall economy. I do and have paid interest, just not enough for an itemized deduction.
Also a reduction in tax rates makes up for the some or all of the loss deductions for many. Lower rates may have positive economic effects, while losing the deduction may hurt housing.
If you pay off your mortgage you come out ahead. In other words, the mortgage interest rate deduction over the long haul is less than if you pay off your mortgage and get the benefit of not having to pay interest.
Satchmo wrote: If you pay off your mortgage you come out ahead. In other words, the mortgage interest rate deduction over the long haul is less than if you pay off your mortgage and get the benefit of not having to pay interest.
I hear what you are saying, but it's not always so cut and dried.
Suppose, like most, you can't afford a home without a mortgage. Then you probably don't mind paying the premium in order to get your own home and avoid paying rent which is money you'll never get back. At least with a home, you'll get something back when you sell it.
If you have extra cash, it might still make sense to get a mortgage, especially if you only have to pay today's rates around 4.9%. If you can keep that cash and invest it, you might eventually end up coming out ahead. And as interest rates go up with inflation, you can maybe once again make more than that 4.9% by putting your money even in a CD.
Also, having a mortgage lets many people itemize and come out ahead of taking just the standard deduction on your taxes. This means other deductions start to kick in. For instance, if you give $1000 to charity, you probably won't be able to deduct it from your taxes without having a mortgage deduction as well (you won't exceed the standard deduction). So with a mortgage you can get about 15%-25% of that $1000 back, depending on your tax bracket.
Pine, your analysis is correct. I have gone thru these calculations before too, and the bump in interest deductions allows you to add on top if you itemize.
Another way to look at mortgage interest is the government subsidizes about 1/3 of it, but you still pay the other 2/3
Also, is it possible that past housing subsidies and tax breaks helped fuel housing inflation???
If you want to be, press one. If you want not to be, press 2
Republicans are red, democrats are blue, neither of them, gives a flip about you.
Joe wrote: Well then you are greedy and selfish VL, how dare you pay off your debts!
I never did trust this economy, the stock market, bond market or anything like that...And I was right. If you don't own your house right now, you're in trouble
