Monday, November 14, 2011

End the Mortgage-Interest Deduction? Are you crazy?

In an article at Bloomberg.com on November 13, 2011 the editors came up with some ideas of their own to help the Super Committee get around the roadblock between Republicans and Democrats. The Republicans are still fighting against any new tax hikes while the Democrats want many new tax increases. And for the record, I will never call a Tax Increase “New Revenue” or any other seemingly nice word combination that always means the same thing, more taxes!

One of their suggestions was to eliminate the mortgage interest deduction. Sometimes I cannot believe that these dingbats in the media ever finished High School much less than receiving an Ivy League education. Does it take a rocket scientist to understand the correlation between a healthy economy and a healthy housing market? Imagine what would happen if we eliminated the mortgage interest deduction. Millions of home owners would have a whopping TAX INCREASE because they would no longer be able to deduct thousands each year from their tax returns!

The mortgage-interest deduction is also a great incentive to buy a home. If this deduction were eliminated the housing market would take a nose dive that would end in a tragic collision with the pavement! It would make more sense for the average home owner to rent than to own. This is one reason that I am not in support of a flat tax. Sure 9-9-9 sounds great but without a mortgage-interest deduction your taxes would go up!

Now, I am not a Rocket Scientist, in fact, I am not even a paper airplane scientist. But I do know how to think for myself and I am very happy that the Republicans in Congress aren’t listening to the editors of Bloomberg.com



2 comments:

  1. Seems like if one were a conservative one would like to do away with the mortgage interest deduction since it puts the government in a position of deciding who's going to be a winner (home buyers) and losers ( renters).

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  2. Steve, I believe that everyone has the opportunity to be a homeowner. In fact, first time home buyers have more opportunity than previous home owners. I believe in capitalism which promotes the idea that everyone who works hard can get ahead. I don't consider it to be a loser for someone who would rather rent, but I do believe that when someone buys a home it causes economic growth for many other people in various industries. Home ownership also means more liability for the homeowner. If they are doing something that promotes the economy they should also have the financial benefit that comes along with it. Remember if is the homeowner who owns the house the renter rents. If the homeowner takes the financial risk he should also reap the financial benefit.

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