Getting rid of MID

[jpinpb]

Well, the reason they were discussing it is b/c they were interviewing the Chairman of the Government Accountability Office who is the one who proposed it, from what I understand.

However, IHB also is discussing it: 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.

[UCGal]

When they eliminated the credit card interest deductions people didn’t stop buying stuff on credit.

History – when income tax came into play – the personal income exemption was above the average income… so only above average income folks and businesses paid income tax. The tax code reflected that it was geared towards businesses – since most people did not even have a mortgage. It wasn’t till the end of WWII that mortgages became common.

Prior to that people saved money, borrowed from family, but it was unusual to take a 30 year mortgage.

They’ve eliminated interest deductions for everything BUT homeownership, over time. I don’t think homeownership rates will change dramatically if they eliminate the deduction.

[UCGal]

When they eliminated the credit card interest deductions people didn’t stop buying stuff on credit.

History – when income tax came into play – the personal income exemption was above the average income… so only above average income folks and businesses paid income tax. The tax code reflected that it was geared towards businesses – since most people did not even have a mortgage. It wasn’t till the end of WWII that mortgages became common.

Prior to that people saved money, borrowed from family, but it was unusual to take a 30 year mortgage.

They’ve eliminated interest deductions for everything BUT homeownership, over time. I don’t think homeownership rates will change dramatically if they eliminate the deduction.

[UCGal]

When they eliminated the credit card interest deductions people didn’t stop buying stuff on credit.

History – when income tax came into play – the personal income exemption was above the average income… so only above average income folks and businesses paid income tax. The tax code reflected that it was geared towards businesses – since most people did not even have a mortgage. It wasn’t till the end of WWII that mortgages became common.

Prior to that people saved money, borrowed from family, but it was unusual to take a 30 year mortgage.

They’ve eliminated interest deductions for everything BUT homeownership, over time. I don’t think homeownership rates will change dramatically if they eliminate the deduction.

[UCGal]

When they eliminated the credit card interest deductions people didn’t stop buying stuff on credit.

History – when income tax came into play – the personal income exemption was above the average income… so only above average income folks and businesses paid income tax. The tax code reflected that it was geared towards businesses – since most people did not even have a mortgage. It wasn’t till the end of WWII that mortgages became common.

Prior to that people saved money, borrowed from family, but it was unusual to take a 30 year mortgage.

They’ve eliminated interest deductions for everything BUT homeownership, over time. I don’t think homeownership rates will change dramatically if they eliminate the deduction.

[UCGal]

When they eliminated the credit card interest deductions people didn’t stop buying stuff on credit.

History – when income tax came into play – the personal income exemption was above the average income… so only above average income folks and businesses paid income tax. The tax code reflected that it was geared towards businesses – since most people did not even have a mortgage. It wasn’t till the end of WWII that mortgages became common.

Prior to that people saved money, borrowed from family, but it was unusual to take a 30 year mortgage.

They’ve eliminated interest deductions for everything BUT homeownership, over time. I don’t think homeownership rates will change dramatically if they eliminate the deduction.

[temeculaguy]

There is another thread going that talks about how that is already somewhat in place because of the AMT which is set to return. If you’ve got the income to have more than a 500k loan, you are likely going to get clobbered anyway. It’s only going to screw California and New York, traditionally blue states, I doubt Obama wants to piss off all the rich democrats. But something like that could pass, it would only hurt certain markets in a few states. 90% of the country would consider people in 700k+ homes as rich, which isn’t really accurate in a few california cities. I wonder what percentage of San Diego has more than 500k loans. A lot of areas have higher than 500k values but that doesn’t always mean they have loans that high.

[temeculaguy]

There is another thread going that talks about how that is already somewhat in place because of the AMT which is set to return. If you’ve got the income to have more than a 500k loan, you are likely going to get clobbered anyway. It’s only going to screw California and New York, traditionally blue states, I doubt Obama wants to piss off all the rich democrats. But something like that could pass, it would only hurt certain markets in a few states. 90% of the country would consider people in 700k+ homes as rich, which isn’t really accurate in a few california cities. I wonder what percentage of San Diego has more than 500k loans. A lot of areas have higher than 500k values but that doesn’t always mean they have loans that high.

[temeculaguy]

There is another thread going that talks about how that is already somewhat in place because of the AMT which is set to return. If you’ve got the income to have more than a 500k loan, you are likely going to get clobbered anyway. It’s only going to screw California and New York, traditionally blue states, I doubt Obama wants to piss off all the rich democrats. But something like that could pass, it would only hurt certain markets in a few states. 90% of the country would consider people in 700k+ homes as rich, which isn’t really accurate in a few california cities. I wonder what percentage of San Diego has more than 500k loans. A lot of areas have higher than 500k values but that doesn’t always mean they have loans that high.

[temeculaguy]

There is another thread going that talks about how that is already somewhat in place because of the AMT which is set to return. If you’ve got the income to have more than a 500k loan, you are likely going to get clobbered anyway. It’s only going to screw California and New York, traditionally blue states, I doubt Obama wants to piss off all the rich democrats. But something like that could pass, it would only hurt certain markets in a few states. 90% of the country would consider people in 700k+ homes as rich, which isn’t really accurate in a few california cities. I wonder what percentage of San Diego has more than 500k loans. A lot of areas have higher than 500k values but that doesn’t always mean they have loans that high.

[temeculaguy]

There is another thread going that talks about how that is already somewhat in place because of the AMT which is set to return. If you’ve got the income to have more than a 500k loan, you are likely going to get clobbered anyway. It’s only going to screw California and New York, traditionally blue states, I doubt Obama wants to piss off all the rich democrats. But something like that could pass, it would only hurt certain markets in a few states. 90% of the country would consider people in 700k+ homes as rich, which isn’t really accurate in a few california cities. I wonder what percentage of San Diego has more than 500k loans. A lot of areas have higher than 500k values but that doesn’t always mean they have loans that high.

[jpinpb]

My bad. I didn’t see the other thread. Thanks. I’ll post there.

[jpinpb]

My bad. I didn’t see the other thread. Thanks. I’ll post there.

[jpinpb]

My bad. I didn’t see the other thread. Thanks. I’ll post there.

[jpinpb]

My bad. I didn’t see the other thread. Thanks. I’ll post there.

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