Home mortgage tax deduction

[ruffryder]

Oh and by the way,keeping the money I have earned is not a subsidy!

It is a subsidy. The government is subsidizing your mortgage. No mortgage, no subsidy. Your just playing a semantics game at this point.

I took a look at the tax foundation website, witch I believe is run by the Koch brothers?

Interesting search on the mortgage interest tax deductions..

It looks like most of the benefit isn't for the middle class and below. There seems to also be an issue that the subsidy makes real estate look much better then other types of investments...

 

[Seedie_Man]

It is a subsidy. The government is subsidizing your mortgage. No mortgage, no subsidy. Your just playing a semantics game at this point.

Spoken by a true blue tax and spend liberal. Always looking for another buck to spend. Semantics is your A game isn't it?

Are dependents a subsidy also?

How about we eliminate earned income tax credit. That way people that pay in $200.00 don't get $800.00 back. Now that's a subsidy.

If all deductions are eliminated, what's left is basically a flat tax system.
I'm all for all income levels paying their "FAIR" share!

 

[ruffryder]

Are dependents a subsidy also?

yep, now you are getting it...

How about we eliminate earned income tax credit. That way people that pay in $200.00 don't get $800.00 back. Now that's a subsidy.

yep that too, sounds good removing it. There are lots more that should be removed as well

If all deductions are eliminated, what's left is basically a flat tax system.
I'm all for all income levels paying their "FAIR" share!

It wouldn't be flat, but it would be a heck of a lot more simple and probably more fair

I wasn't trying to state that the mortgage interest tax deduction would be the only thing to be removed, but it could be part of an overall change to the tax code. Looking into the data a little more shows that it generally only helps the wealthy and does little to help get people into homes. It also allows for inflated home prices / values.

 

[POLZIN]

Does it make sense the more kids that you have that ar in schools etc. the less tax you pay. Seems like fair would be to pay for your own kids education right ?

the way we do it never made sense even though I enjoy the deduction myself !

 

[winter brew]

I'm tired of subsidizing the government.

 

[ruffryder]

Are dependents a subsidy also?

Does it make sense the more kids that you have that ar in schools etc. the less tax you pay. Seems like fair would be to pay for your own kids education right ?

the way we do it never made sense even though I enjoy the deduction myself !

good point!

 

[Seedie_Man]

I'm tired of subsidizing the government.

Exactly my feeling!

 

[Seedie_Man]

Does it make sense the more kids that you have that ar in schools etc. the less tax you pay. Seems like fair would be to pay for your own kids education right ?

the way we do it never made sense even though I enjoy the deduction myself !

If I had a choice to pay directly myself that would be great! Guaranteed, if the whole system was that way, schools would be a lot different than what they are now!

The main buzz word that the libs are using is "fair" (corps. and super rich pay their fair share), if we truly went to a fair system the libs wouldn't be very happy.

 

[Hardass]

Good lord what kind of idiot would Get a loan on his house to buy a toy? Prioritys are all fouled up in this country. I wonder if there was a flat tax or laddered flat tax how many jobs would be lost?

 

[ruffryder]

Good lord what kind of idiot would Get a loan on his house to buy a toy? Prioritys are all fouled up in this country. I wonder if there was a flat tax or laddered flat tax how many jobs would be lost?

I bet the size of loans would decrease.. Interesting that we use to buy things with money we had. Not take a loan out for buying groceries everyday. I bet the people of the US give up billions of dollars to banks every year just because they buy things on credit and pay interest instead of paying cash.

 

[POLZIN]

If I had a choice to pay directly myself that would be great! Guaranteed, if the whole system was that way, schools would be a lot different than what they are now!

The main buzz word that the libs are using is "fair" (corps. and super rich pay their fair share), if we truly went to a fair system the libs wouldn't be very happy.

I will pay my Fair Share when all the takers work their fair share and do the same.

 

[JSCC]

Good lord what kind of idiot would Get a loan on his house to buy a toy? Prioritys are all fouled up in this country. I wonder if there was a flat tax or laddered flat tax how many jobs would be lost?

If you look at investments vs interest paid, you would think differently. If you were to buy a 30k truck per say with your equity, you in turn could write off the interest. If your interest rate at the time is close to that of a car loan, you just saved yourself a lot of money. You could still pay it off with the same terms as a car loan..... It's all in how you look at things. This would go away if you lost the home interest tax credit....

 

[Hardass]

I'm just saying to refi your home to buy toys such as sleds 4 wheelers and what not seems crazy to me. i can not see putting my home at risk for that purpose. I think the home deduction was meant to be for just that your home. But we have found ways to use it to get other things with a deduction as well. That is if you have equity in a home. If not your out of luck.The more you have the more you can get away with.

 

[ruffryder]

If you look at investments vs interest paid, you would think differently. If you were to buy a 30k truck per say with your equity, you in turn could write off the interest. If your interest rate at the time is close to that of a car loan, you just saved yourself a lot of money. You could still pay it off with the same terms as a car loan..... It's all in how you look at things. This would go away if you lost the home interest tax credit....

So not only did the govt subsidize a home, but they also subsidized a truck purchase as well?

Anyone see a problem with this? I think a big problem with this country is easy money.. It is so easy to leverage ourselves these days.

 

[DOO DAWG]

So not only did the govt subsidize a home, but they also subsidized a truck purchase as well?

Anyone see a problem with this? I think a big problem with this country is easy money.. It is so easy to leverage ourselves these days.

So have you REALLY not noticed this sort of thing going on all around you for the last 15 years or so? Have you been with the Geico guys under the rock?

 

[winter brew]

So not only did the govt subsidize a home, but they also subsidized a truck purchase as well?

Anyone see a problem with this? I think a big problem with this country is easy money.. It is so easy to leverage ourselves these days.

That's the American way!! How else is a guy supposed to afford a couple Plasma TV's, fancy cell phones and a new snowmobile....in an entry level job at the age of 20. Do you really expect people to SAVE for this stuff?? Going without is NOT an option.

 

[Seedie_Man]

That's the American way!! How else is a guy supposed to afford a couple Plasma TV's, fancy cell phones and a new snowmobile....in an entry level job at the age of 20. Do you really expect people to SAVE for this stuff?? Going without is NOT an option.

I've not done it so I can't say for sure, but I think it's easier to get a second mortgage than a first. More like a line of credit. I also believe that is why so many ended upside down on their homes.

But what I really wanted to point out was that the Government had to go looking for more money to finance more entitlements, so what they did was eliminate being able to deduct "any" interest, to just home mortgage interest.
And now what ruffy is proposing is to give them more money to waste, rather than fix the real problem!

 

[ruffryder]

Do you really expect people to SAVE for this stuff?? Going without is NOT an option.

I like Dave Ramseys saying, to "Live like no one else, so I can live like no one else". Meaning live on peanuts on my present, so I can live on more then peanuts in my future. It is difficult though. There is a whole sector of the economy that is devoted to getting people to buy things they don't want or need.

So have you REALLY not noticed this sort of thing going on all around you for the last 15 years or so? Have you been with the Geico guys under the rock?

Under a no debt rock I guess. Maybe it is because I have tried to always worked and paid cash for things? Or I lived a sheltered life.

I've not done it so I can't say for sure, but I think it's easier to get a second mortgage than a first. More like a line of credit. I also believe that is why so many ended upside down on their homes.

agreed. People took the equity out of their homes, assuming it would continue to increase. Though there are also a lot of people that are upside down on their primary loan as well.

And now what ruffy is proposing is to give them more money to waste, rather than fix the real problem!

you are assuming what the money will be used for. I was only stating cutting of a subsidy. You are correct in that it is important that the money goes to something of value and that there are much more cuts in other government spending..

I did not mean to imply that it would be another source to fund entitlements.

 

[03RMK800]

I am in favor of taxing the corporations on their net operating revenues (before tax calculations to arrive at taxable income). Then, when tax paid is passed through in the price of goods and services, most the 48% of people paying no income tax will be (indirectly) paying some income tax. Problem with my idea is that, historically, once congress and the president get ahold of the increased revenue, the money is gone down the same rathole as before.

 

[swampwater]

I am in favor of taxing the corporations on their net operating revenues (before tax calculations to arrive at taxable income). Then, when tax paid is passed through in the price of goods and services, most the 48% of people paying no income tax will be (indirectly) paying some income tax. Problem with my idea is that, historically, once congress and the president get ahold of the increased revenue, the money is gone down the same rathole as before.

Bingo!! The problem is Spending Reform not Tax Reform!! I Guess Ruffy's liberal bias leads him to believe the government is better equipped to spend your life energy. I guess he supports wasting your life energy on rebuilding mosques@!! Swampy

http://youtu.be/vjRq5ZpAJbo