Elimination of Mortgage Deduction

[edna_mode]

More analysis and data on the mortgage deduction:

http://modeledbehavior.com/2010/11/11/simpson-bowles-should-the-mortgage-interest-deduction-be-eliminated/

What I took away:

1) Lots of studies have been done on educational performance of children in homeowning families and there is a positive correlation and causation.

2) Homeownership rates have not changed in almost 40 years despite fluctuations in % people itemizing (and profound changes in the tax code).

As someone who doesn’t want riots, I think phasing out, or putting caps on deductability so that the housing market can slowly reflect those changes makes sense.

As an observer of the framing of the political discussion, I think it was brilliant to move the Overton window: offer something outrageous first (abolish deduction) so that your next offer seems sane by comparison (cap deduction)

Canada has similar homeownership rates with no interest deduction, and mortgages that are all basically 5 year ARMs — you have to reset the rate every 5 years over the 15-25yr loan. And none of their banks failed. Just an observation.

[AK]

I don’t care if my taxes go up or down. I just care that I pay less in taxes than the jealous bitter renters who take no risks and contribute nothing to the economy. I’ll be furious if they get tax breaks too. 😉

It’s amazing how becoming a housedebtor can have such a drastic change on one’s outlook 🙂

[AK]

I don’t care if my taxes go up or down. I just care that I pay less in taxes than the jealous bitter renters who take no risks and contribute nothing to the economy. I’ll be furious if they get tax breaks too. 😉

It’s amazing how becoming a housedebtor can have such a drastic change on one’s outlook 🙂

[AK]

I don’t care if my taxes go up or down. I just care that I pay less in taxes than the jealous bitter renters who take no risks and contribute nothing to the economy. I’ll be furious if they get tax breaks too. 😉

It’s amazing how becoming a housedebtor can have such a drastic change on one’s outlook 🙂

[AK]

I don’t care if my taxes go up or down. I just care that I pay less in taxes than the jealous bitter renters who take no risks and contribute nothing to the economy. I’ll be furious if they get tax breaks too. 😉

It’s amazing how becoming a housedebtor can have such a drastic change on one’s outlook 🙂

[AK]

I don’t care if my taxes go up or down. I just care that I pay less in taxes than the jealous bitter renters who take no risks and contribute nothing to the economy. I’ll be furious if they get tax breaks too. 😉

It’s amazing how becoming a housedebtor can have such a drastic change on one’s outlook 🙂

[no_such_reality]

Nothing will work unless they make everybody have skin in the tax game.

[no_such_reality]

Nothing will work unless they make everybody have skin in the tax game.

[no_such_reality]

Nothing will work unless they make everybody have skin in the tax game.

[no_such_reality]

Nothing will work unless they make everybody have skin in the tax game.

[no_such_reality]

Nothing will work unless they make everybody have skin in the tax game.

[jpinpb]

IHB President Obama created the bipartisan commission in February to provide options on overhauling the tax system and reducing the national deficit. According to a November report, one option excludes citizens from deducting interest payments on second residences, home equity loans or mortgages over $500,000.

Also KPBS was interviewing some guy over at Government Accountability Office and they were discussing eliminating the MID.

[jpinpb]

IHB President Obama created the bipartisan commission in February to provide options on overhauling the tax system and reducing the national deficit. According to a November report, one option excludes citizens from deducting interest payments on second residences, home equity loans or mortgages over $500,000.

Also KPBS was interviewing some guy over at Government Accountability Office and they were discussing eliminating the MID.

[jpinpb]

IHB President Obama created the bipartisan commission in February to provide options on overhauling the tax system and reducing the national deficit. According to a November report, one option excludes citizens from deducting interest payments on second residences, home equity loans or mortgages over $500,000.

Also KPBS was interviewing some guy over at Government Accountability Office and they were discussing eliminating the MID.

[jpinpb]

IHB President Obama created the bipartisan commission in February to provide options on overhauling the tax system and reducing the national deficit. According to a November report, one option excludes citizens from deducting interest payments on second residences, home equity loans or mortgages over $500,000.

Also KPBS was interviewing some guy over at Government Accountability Office and they were discussing eliminating the MID.

[Author]

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