Ax may fall on tax break for mortgages

[meadandale]

[quote=briansd1]
BTW, I believe that doing away with “tax entitlements” is the most politically viable way of closing the deficit without increasing tax rates. You can increase revenue without increasing taxes, just closing loopholes.[/quote]

Sure, we can start with AFDC and EITC. Let’s make sure everyone share’s the tax burden.

[briansd1]

[quote=FormerSanDiegan]

Interesting counterpoint. But in this case the capital allocation would shift from consumers to the Federal Government. Are you suggesting that the Federal Government makes more productive investments than private individuals ?[/quote]

FormerSanDiegan, didn’t you just say that the government would not collect more from eliminating the mortgage interest deduction?

I believe that at best, eliminating MID would be revenue positive and at worse, revenue neutral.

Resources will be allocated away from housing to more productive investments because MID causes people to buy houses just to get a tax break.

Remember, you have to spend $1 to get 40c in tax breaks.

[briansd1]

[quote=FormerSanDiegan]

Interesting counterpoint. But in this case the capital allocation would shift from consumers to the Federal Government. Are you suggesting that the Federal Government makes more productive investments than private individuals ?[/quote]

FormerSanDiegan, didn’t you just say that the government would not collect more from eliminating the mortgage interest deduction?

I believe that at best, eliminating MID would be revenue positive and at worse, revenue neutral.

Resources will be allocated away from housing to more productive investments because MID causes people to buy houses just to get a tax break.

Remember, you have to spend $1 to get 40c in tax breaks.

[briansd1]

[quote=FormerSanDiegan]

Interesting counterpoint. But in this case the capital allocation would shift from consumers to the Federal Government. Are you suggesting that the Federal Government makes more productive investments than private individuals ?[/quote]

FormerSanDiegan, didn’t you just say that the government would not collect more from eliminating the mortgage interest deduction?

I believe that at best, eliminating MID would be revenue positive and at worse, revenue neutral.

Resources will be allocated away from housing to more productive investments because MID causes people to buy houses just to get a tax break.

Remember, you have to spend $1 to get 40c in tax breaks.

[briansd1]

[quote=FormerSanDiegan]

Interesting counterpoint. But in this case the capital allocation would shift from consumers to the Federal Government. Are you suggesting that the Federal Government makes more productive investments than private individuals ?[/quote]

FormerSanDiegan, didn’t you just say that the government would not collect more from eliminating the mortgage interest deduction?

I believe that at best, eliminating MID would be revenue positive and at worse, revenue neutral.

Resources will be allocated away from housing to more productive investments because MID causes people to buy houses just to get a tax break.

Remember, you have to spend $1 to get 40c in tax breaks.

[briansd1]

[quote=FormerSanDiegan]

Interesting counterpoint. But in this case the capital allocation would shift from consumers to the Federal Government. Are you suggesting that the Federal Government makes more productive investments than private individuals ?[/quote]

FormerSanDiegan, didn’t you just say that the government would not collect more from eliminating the mortgage interest deduction?

I believe that at best, eliminating MID would be revenue positive and at worse, revenue neutral.

Resources will be allocated away from housing to more productive investments because MID causes people to buy houses just to get a tax break.

Remember, you have to spend $1 to get 40c in tax breaks.

[XBoxBoy]

Whoa! Wait a minute!!!

I’m either completely wrong or completely stunned. Here’s an article on the Wall Street Journal site that says: “Californians that claimed the mortgage interest rate deduction saved an average of almost $20,000 from their tax bill in 2008”

Then when you look at the chart it revels that the average DEDUCTION is $18,876 for California.

Now unless I’m mistaken, and been messin’ up on my taxes for years, a deduction is not the same thing as saving that amount off your tax bill. Doesn’t a writer for the Wall Street Journal know this???

Am I completely wrong??????????

Seems to me that a tax deduction for interest of $18,876 is worth at best 5 or 6k off your tax bill, and given you lose the standard deduction when itemizing (which you gotta do to take the interest) this author is waaaayyyyy off base with his claim.

XBoxBoy,

ps. for someone to save 20k off their tax bill wouldn’t that have to pay over 50k a year in interest? Does anyone think the average californian who’s paying a mortgage is paying over 50k a year in motgage interest?

[XBoxBoy]

Whoa! Wait a minute!!!

I’m either completely wrong or completely stunned. Here’s an article on the Wall Street Journal site that says: “Californians that claimed the mortgage interest rate deduction saved an average of almost $20,000 from their tax bill in 2008”

Then when you look at the chart it revels that the average DEDUCTION is $18,876 for California.

Now unless I’m mistaken, and been messin’ up on my taxes for years, a deduction is not the same thing as saving that amount off your tax bill. Doesn’t a writer for the Wall Street Journal know this???

Am I completely wrong??????????

Seems to me that a tax deduction for interest of $18,876 is worth at best 5 or 6k off your tax bill, and given you lose the standard deduction when itemizing (which you gotta do to take the interest) this author is waaaayyyyy off base with his claim.

XBoxBoy,

ps. for someone to save 20k off their tax bill wouldn’t that have to pay over 50k a year in interest? Does anyone think the average californian who’s paying a mortgage is paying over 50k a year in motgage interest?

[XBoxBoy]

Whoa! Wait a minute!!!

I’m either completely wrong or completely stunned. Here’s an article on the Wall Street Journal site that says: “Californians that claimed the mortgage interest rate deduction saved an average of almost $20,000 from their tax bill in 2008”

Then when you look at the chart it revels that the average DEDUCTION is $18,876 for California.

Now unless I’m mistaken, and been messin’ up on my taxes for years, a deduction is not the same thing as saving that amount off your tax bill. Doesn’t a writer for the Wall Street Journal know this???

Am I completely wrong??????????

Seems to me that a tax deduction for interest of $18,876 is worth at best 5 or 6k off your tax bill, and given you lose the standard deduction when itemizing (which you gotta do to take the interest) this author is waaaayyyyy off base with his claim.

XBoxBoy,

ps. for someone to save 20k off their tax bill wouldn’t that have to pay over 50k a year in interest? Does anyone think the average californian who’s paying a mortgage is paying over 50k a year in motgage interest?

[XBoxBoy]

Whoa! Wait a minute!!!

I’m either completely wrong or completely stunned. Here’s an article on the Wall Street Journal site that says: “Californians that claimed the mortgage interest rate deduction saved an average of almost $20,000 from their tax bill in 2008”

Then when you look at the chart it revels that the average DEDUCTION is $18,876 for California.

Now unless I’m mistaken, and been messin’ up on my taxes for years, a deduction is not the same thing as saving that amount off your tax bill. Doesn’t a writer for the Wall Street Journal know this???

Am I completely wrong??????????

Seems to me that a tax deduction for interest of $18,876 is worth at best 5 or 6k off your tax bill, and given you lose the standard deduction when itemizing (which you gotta do to take the interest) this author is waaaayyyyy off base with his claim.

XBoxBoy,

ps. for someone to save 20k off their tax bill wouldn’t that have to pay over 50k a year in interest? Does anyone think the average californian who’s paying a mortgage is paying over 50k a year in motgage interest?

[XBoxBoy]

Whoa! Wait a minute!!!

I’m either completely wrong or completely stunned. Here’s an article on the Wall Street Journal site that says: “Californians that claimed the mortgage interest rate deduction saved an average of almost $20,000 from their tax bill in 2008”

Then when you look at the chart it revels that the average DEDUCTION is $18,876 for California.

Now unless I’m mistaken, and been messin’ up on my taxes for years, a deduction is not the same thing as saving that amount off your tax bill. Doesn’t a writer for the Wall Street Journal know this???

Am I completely wrong??????????

Seems to me that a tax deduction for interest of $18,876 is worth at best 5 or 6k off your tax bill, and given you lose the standard deduction when itemizing (which you gotta do to take the interest) this author is waaaayyyyy off base with his claim.

XBoxBoy,

ps. for someone to save 20k off their tax bill wouldn’t that have to pay over 50k a year in interest? Does anyone think the average californian who’s paying a mortgage is paying over 50k a year in motgage interest?

[briansd1]

[quote=meadandale][quote=briansd1]
BTW, I believe that doing away with “tax entitlements” is the most politically viable way of closing the deficit without increasing tax rates. You can increase revenue without increasing taxes, just closing loopholes.[/quote]

Sure, we can start with AFDC and EITC. Let’s make sure everyone share’s the tax burden.[/quote]

Since 1996 AFDC has been Temporary Assistance for Needy Families and limited to a lifetime of 5 years. TAFNF helps people who fall on hard times get back up on their feet.

EITC encourages low income folks to work and earn a salary. It was last expanded in 2001 when taxes were cut.

Tax entitlements are tax deductions for people who have good earnings already since they have the money to spend in order to get the deductions.

[briansd1]

[quote=meadandale][quote=briansd1]
BTW, I believe that doing away with “tax entitlements” is the most politically viable way of closing the deficit without increasing tax rates. You can increase revenue without increasing taxes, just closing loopholes.[/quote]

Sure, we can start with AFDC and EITC. Let’s make sure everyone share’s the tax burden.[/quote]

Since 1996 AFDC has been Temporary Assistance for Needy Families and limited to a lifetime of 5 years. TAFNF helps people who fall on hard times get back up on their feet.

EITC encourages low income folks to work and earn a salary. It was last expanded in 2001 when taxes were cut.

Tax entitlements are tax deductions for people who have good earnings already since they have the money to spend in order to get the deductions.

[briansd1]

[quote=meadandale][quote=briansd1]
BTW, I believe that doing away with “tax entitlements” is the most politically viable way of closing the deficit without increasing tax rates. You can increase revenue without increasing taxes, just closing loopholes.[/quote]

Sure, we can start with AFDC and EITC. Let’s make sure everyone share’s the tax burden.[/quote]

Since 1996 AFDC has been Temporary Assistance for Needy Families and limited to a lifetime of 5 years. TAFNF helps people who fall on hard times get back up on their feet.

EITC encourages low income folks to work and earn a salary. It was last expanded in 2001 when taxes were cut.

Tax entitlements are tax deductions for people who have good earnings already since they have the money to spend in order to get the deductions.

[briansd1]

[quote=meadandale][quote=briansd1]
BTW, I believe that doing away with “tax entitlements” is the most politically viable way of closing the deficit without increasing tax rates. You can increase revenue without increasing taxes, just closing loopholes.[/quote]

Sure, we can start with AFDC and EITC. Let’s make sure everyone share’s the tax burden.[/quote]

Since 1996 AFDC has been Temporary Assistance for Needy Families and limited to a lifetime of 5 years. TAFNF helps people who fall on hard times get back up on their feet.

EITC encourages low income folks to work and earn a salary. It was last expanded in 2001 when taxes were cut.

Tax entitlements are tax deductions for people who have good earnings already since they have the money to spend in order to get the deductions.

[Author]

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