Jamesb101.com

commentary on Politics and a little bit of everything else

Anyone that votes to take away my mortgage deduction…Does so at their own risk…..

I mean that shit!

I grew up in the projects in New York…

I am still in the first house I brought….

It’s small….

And I’ll be paying for it for the rest of my life…

But one of saving graces of this house is the fact that I get a nice deduction for paying the mortgage….

I give my congressmen a warning…

DON’T MESS WITH MY DEDUCTION!

Failure to heed that warning will insure dire consequences in the housing market….and your politcal career….

There are a awful lot of people with me on this one…..

Don’t f*#k this up!………

The new spotlight on the mortgage deduction and other tax expenditures comes as the Obama administration and Congress consider ways to reduce deficits the Congressional Budget Office (CBO) expects will average nearly $1 trillion over the next decade.

Policymakers seeking savings have tried to cap the mortgage interest deduction before — and failed. Five years ago, a bipartisan tax reform commission created by President George W. Bush proposed ending the mortgage tax break. But the commission’s plan stalled in Congress, partly because of popular support for the mortgage deduction.

Obama’s proposal, which would cut the deduction rate for itemized expenses for those making more than $250,000 to the rate paid by the middle class, was panned last year by members of both parties. They worried about its effect, during a recession, on charitable deductions and the housing market.

The White House says it was included in the president’s budget proposal again this year because it remains a good idea.

“The proposal will correct inequities in our tax code that allow millionaires to benefit from higher itemized tax deductions than middle-class families enjoy,” said Meg Reilly, spokeswoman for the Office of Management and Budget (OMB).

Although the backers of the mortgage interest tax break defend it as a key incentive for people to own rather than rent their homes, some say that’s not so. A Brookings-Urban Tax Policy Center study found that the mortgage interest tax break costs more than $100 billion annually but does little to encourage the middle class and less wealthy to buy homes.

“I’m not sure that we need to subsidize homeownership at all through the tax system,” said Eric Toder, the study’s lead author.

This guy must live in an apartment…..

More…..

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June 8, 2010 - Posted by | Blogs, Breaking News, Counterpoints, Government, Home, Law, Media, PoliticalDog Calls, Politics, Projections, Taxes, The Economy, Updates | , ,

3 Comments »

  1. A stare in the mirror moment!

    Comment by My Name Is jack | June 8, 2010 | Reply

  2. The mortgage interest deduction distorts the market, and, as usual (cf. farm subsidies that mainly go to agribusiness or the now discontinued private student loan programme), it helps the low and moderate income homebuyer in the least progressive and efficient way.

    That’s for two or three reasons (having worked a couple of seasons as an income tax return preparer):

    (1) The more house you buy on credit, the bigger the tax break.

    (2) The more interest you pay the bank, the bigger the tax break.

    (3) Since is a tax deduction rather than a tax credit, the higher your tax bracket, the greater the value to you of the mortgage tax deduction. If you deduct $5,000 and have a marginal rate of 35%, it’s worth $1,750; but if your marginal rate is 20%, then it’s worth only $1,000.

    (4) Renters don’t get a break, except a rather contingent one dependent on how much of the interest that landlords can deduct on Schedule E actually passes through in the form of lower rent or better maintenance. If the landlord or landlady isn’t still paying off a mortgage (say s/he inherited the property free and clear), then of course there’s no break to pass through.

    Comment by Democratic Socialist Dave | June 8, 2010 | Reply

  3. My points DSD…..

    Taking that away is not going to make a lot…lot of people unhappy…..

    Comment by jamesb101 | June 8, 2010 | Reply


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