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Mortgage-interest deduction
could be on the table
in ‘fiscal cliff’ debate

Washington Post, by Brady Dennis

Original Article

Posted By:Dreadnought, 11/28/2012 10:52:14 PM

Of all the deductions woven into the sprawling U.S. tax code, few have been more fiercely guarded than the enormous tax break that lets homeowners deduct the interest they pay on their mortgages. But as Congress and the White House negotiate the first major rewrite of tax laws in decades, changing the generations-old mortgage-interest deduction — which costs the government roughly $100 billion a year — has gone from far-off possibility to part of the conversation. The outcome of that debate could have profound long-term effects on homeowners across the country — and particularly those in the Washington area

      


Post Reply  

Reply 1 - Posted by: ColoWapiti, 11/28/2012 10:56:21 PM     (No. 9038632)

Notice how when we keep more of our own money it "costs the government". When they give money to people that was not theirs to begin with, it´s an "investment".

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Reply 2 - Posted by: GW_Rider, 11/28/2012 10:57:38 PM     (No. 9038634)

FTA: "costs the government roughly $100 billion a year"

It´s not your money parasites.

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Reply 3 - Posted by: joew9, 11/28/2012 11:01:27 PM     (No. 9038637)

"Costs the government"!?! Indeed!

Let´s put it another way.

Eliminate the deduction and cost the people $100 billion a year.

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Reply 4 - Posted by: 4Justice, 11/28/2012 11:14:20 PM     (No. 9038650)

Oh great...just when I was going to try to buy my very first house at the ripe old age of 50... Does anything ever go right?

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Reply 5 - Posted by: Axeman, 11/28/2012 11:15:25 PM     (No. 9038654)

What cuts are the Demz going to do. Real cuts, not just cuts in growth. Name 5 fed programs that are going to be stopped.

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Reply 6 - Posted by: tisHimself, 11/28/2012 11:31:06 PM     (No. 9038665)

IV, congratulations.

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Reply 7 - Posted by: Safari Man, 11/29/2012 12:03:55 AM     (No. 9038694)

Now that interest rates are so low, is this really that much of a deduction for people (I don´t have a mortgage, so I really don´t know).

It seems that this will result in double taxation... the interest income will be taxed for the lender, and the borrower will be paying the interest with after-tax income.

In any case, this is regressive tax since wealthy people will simply liquidate some weak investments and pay off their mortgage.


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Reply 8 - Posted by: Grant Hodges, 11/29/2012 1:01:20 AM     (No. 9038719)

Correct, no. 7. This is an attack on the middle class and poor people, just like hiking energy prices. The rich skate past this, but the poor are crushed, and the middle class hobbled. In Stinky´s view, they deserve it.

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Reply 9 - Posted by: oh-heck, 11/29/2012 1:24:46 AM     (No. 9038732)

The GOP will lose any attempt at a compromise. Better to accept either Clinton rates for all. The Clinton rates and the Sequester are the current default. Force the Dems to clearly spell out and sell any alternative plans.

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Reply 10 - Posted by: DARling, 11/29/2012 1:49:54 AM     (No. 9038739)

That "costs the government" line jumped right out at me, too. WE are the government. WE own this country. Washington does not own us and our money. Unless we let them, of course, like slightly more than half of the people voted to do. I think the Obama voters believe all of that "government money" is really meant for them.

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Reply 11 - Posted by: mws50, 11/29/2012 2:08:21 AM     (No. 9038747)

Is it really Brady Dennis´s fault that he is an incredibly ignorant journalist? The poor clueless fool "thinks" the interest deduction "costs" government. It does not cost government a single penny. It is not the government´s money. It is not his fault, he´s your average libtard, living in DC.

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Reply 12 - Posted by: kOok, 11/29/2012 3:05:52 AM     (No. 9038767)

So, you think your house is hard to sell now? Just wait until they take away the mortgage deduction. Combine that with the new 3.79% Obamacare sales tax on real estate, and you might as well take out a 100 year mortgage, ´cuz you ain´t selling it. The Japanese created the 100 year mortgage in response to the high price of real estate. We may do the same thing because of the low prices.

A depression, if not already here, is on the way. Brace for impact.

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Reply 13 - Posted by: Country Boy, 11/29/2012 3:39:12 AM     (No. 9038778)

Yes, brace for impact.

And the mortgage interest deduction is definitely a regressive tax, hits middle class hard. But that is where we are. More taxes on the wealthy is really a myth now. There is a max on all taxes beyond which no revenue comes in. We are probably there with taxes on the wealthy.

Middle class will be getting hit hard soon. No way around it. And that is really one of obama´s secret goals. If you think the Kenyan hates rich Americans like Romney, just wait. He hates us in the middle class even more.

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Reply 14 - Posted by: Trigger2, 11/29/2012 4:53:08 AM     (No. 9038795)

The middle class is where the goobermint can create more money for themselves to waste. What a surprise.

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Reply 15 - Posted by: billa, 11/29/2012 5:21:25 AM     (No. 9038808)

Adjusting the tax rate based upon income is not only the basest in discrimination, but also punishes those that produce.

More business owners should have prior to the election announced to its employees that if BO was re-elected, that there would be such and such lay offs or firings and health care would no longer be paid for by the employer.

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Reply 16 - Posted by: Spidey, 11/29/2012 5:31:53 AM     (No. 9038816)

The powerball jackpot shows how you really raise money. Get a little bit of money from a whole lot of people.Getting a few more bucks from 2% of the population is chickenfeed.

The rich thing is left wing populism not a solution.Rich people have already paid taxes on their wealth,,you can´t go back and re-claw money so they´ll still have their wealth.There´s CEOs who don´t even take a salary but have lavish expense accounts that are write downs for their business.

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Reply 17 - Posted by: Garry Owen, 11/29/2012 8:08:55 AM     (No. 9038975)

I recommend we take the dive off the fiscal cliff. This is the only way to get the mandatory domestic spending cuts. Once off the cliff the House (because that is where all budget matters must originate) pass a permanent tax relief bill reinstating the Bush Tax rates. Let Obama and the Democrats vote against middle class tax relief, good for 2014. Then, pass a second bill to relieve the military of 1/2 the mandatory budget cuts. Let Obama and the Democrats vote against supporting our military during a time of war. Another winning issue for 2014. I sure hope someone in the GOP Leadership reads Lucianne. This is a no brainer...the only way we the people will get the domestic spending cuts.

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Reply 18 - Posted by: mws50, 11/29/2012 8:43:59 AM     (No. 9039027)

#17, I contacted Boehner through his email.
http://www.speaker.gov/contact

Let him know your thoughts. He will cave, but at least you did your best to inform him.

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Reply 19 - Posted by: Pepper Tree, 11/29/2012 10:44:43 AM     (No. 9039278)

That was double-dumb, #7. Even with 3.5% rates, on a 30 year mortgage the interest portion amounts to 60% of the total payments. Early on, the payments are almost all interest.

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