“Sacrosanct tax breaks, including deductions on mortgage interest, remain on the table just weeks before the deficit commission issues recommendations”
Anyone heard on whether this will be phased in or grandfathered? I am neutral as to whether the deduction is good or bad, but… To lure in buyers who base their expectations on having the deduction there, and then to take that away, it could be the final straw for folks near the edge.
Not gonna happen anytime soon, at least. But even if they try to start phasing it out in, say, five years or so (presumably after housing has stabilized) you still have the issue of how many folks benefit from it (homeowners with mortgages) versus how many folks don’t (renters and homeowners with no mortgage). I think it’s possible several years down the road, but it’s a tough sell when over half of all households benefit from it on net basis. I don’t see a lot of politicians jumping on this bandwagon, but… what is more likely is a lower cap on the deduction, such that only the folks with the largest mortgages are getting penalized. Democracy being what it is, that could pass.
Not gonna happen anytime soon, at least. But even if they try to start phasing it out in, say, five years or so (presumably after housing has stabilized) you still have the issue of how many folks benefit from it (homeowners with mortgages) versus how many folks don’t (renters and homeowners with no mortgage). I think it’s possible several years down the road, but it’s a tough sell when over half of all households benefit from it on net basis. I don’t see a lot of politicians jumping on this bandwagon, but… what is more likely is a lower cap on the deduction, such that only the folks with the largest mortgages are getting penalized. Democracy being what it is, that could pass.
Not gonna happen anytime soon, at least. But even if they try to start phasing it out in, say, five years or so (presumably after housing has stabilized) you still have the issue of how many folks benefit from it (homeowners with mortgages) versus how many folks don’t (renters and homeowners with no mortgage). I think it’s possible several years down the road, but it’s a tough sell when over half of all households benefit from it on net basis. I don’t see a lot of politicians jumping on this bandwagon, but… what is more likely is a lower cap on the deduction, such that only the folks with the largest mortgages are getting penalized. Democracy being what it is, that could pass.
Not gonna happen anytime soon, at least. But even if they try to start phasing it out in, say, five years or so (presumably after housing has stabilized) you still have the issue of how many folks benefit from it (homeowners with mortgages) versus how many folks don’t (renters and homeowners with no mortgage). I think it’s possible several years down the road, but it’s a tough sell when over half of all households benefit from it on net basis. I don’t see a lot of politicians jumping on this bandwagon, but… what is more likely is a lower cap on the deduction, such that only the folks with the largest mortgages are getting penalized. Democracy being what it is, that could pass.
