[quote=SK in CV][quote=FormerSanDiegan][quote=captcha]I was under impression that all interest used to be deductible. If that is the case the current deduction is really not a subsidy, but money not confiscated by the government. Yet.
And low-income renters do get some breaks like Section 8 and renter’s tax credit in some states (including CA).[/quote]
captcha is correct. Interest on credit cards and installment loans (e.g. car loans, furtniture loans, etc) were deductible before 1986 tax reform.
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Yeah, he’s right on the first sentence. The second sentence is a logical fallacy of some sort. I’m not sure which kind. It makes no sense whatsoever.[/quote]
That hurts 🙂
The government increases what it takes and all of the sudden the money that it does not take becomes a subsidy? I am not saying that taxing interest on mortgage is unfair way of covering the expenses incurred by the government, but that deduction is not something given to people. It is something not yet taken away from them.
