Proposed Mortgage Interest Deduction Phase Out?

[briansd1]

[quote=Huckleberry]Has anybody hear the latest on the status of the Obama administration eliminating or modifying this tax benefit?

Also, what is the current proposed structure of any modification?[/quote]

Actually Libetarians want the mortgage interest deduction totally eliminated because it represents government welfare and intervention.

Here’s an article from libertarian CATO:
http://www.cato-at-liberty.org/now-is-the-time-to-end-the-mortgage-interest-deduction/

The libertarian wing of the Tea party embraced the elimination of the MID; but the Tea Party discovered that the MID is very popular so they are now playing up the populist appeal of MID.

President Obama’s proposal is a modest rollback of the MID.

The president once again proposed in his budget to curtail high-income earners’ tax deduction for mortgage interest payments and charitable contributions.

Under his proposal, taxpayers in the 33% and 35% tax brackets would only be able to deduct their contributions and mortgage interest payments at the 28% rate. It would affect those with taxable income of $250,000 and up and bring in $321 billion over 10 years, according to the White House

http://money.cnn.com/2011/02/15/news/economy/mortgage_interest_deduction/index.htm

[an]

[quote=CONCHO]Oh yeah, home prices would collapse. Also, people will moonwalk away from the mortgages en masse. I know I probably would![/quote]
Except for those who are paying less for mortgage than comparable rent, even w/out mortgage deduction.

[an]

[quote=CONCHO]Oh yeah, home prices would collapse. Also, people will moonwalk away from the mortgages en masse. I know I probably would![/quote]
Except for those who are paying less for mortgage than comparable rent, even w/out mortgage deduction.

[an]

[quote=CONCHO]Oh yeah, home prices would collapse. Also, people will moonwalk away from the mortgages en masse. I know I probably would![/quote]
Except for those who are paying less for mortgage than comparable rent, even w/out mortgage deduction.

[an]

[quote=CONCHO]Oh yeah, home prices would collapse. Also, people will moonwalk away from the mortgages en masse. I know I probably would![/quote]
Except for those who are paying less for mortgage than comparable rent, even w/out mortgage deduction.

[an]

[quote=CONCHO]Oh yeah, home prices would collapse. Also, people will moonwalk away from the mortgages en masse. I know I probably would![/quote]
Except for those who are paying less for mortgage than comparable rent, even w/out mortgage deduction.

[Huckleberry]

So my thought is…

There is a high majority of $250K and above income earners along the coastal areas of SD, especially west of the 5.

I foresee housing in these areas receiving a major valuation blow if this Obama legislation is passed. Am I missing something here?

If this does get passed, what is the time frame it will take for these areas to start feeling significant downward pricing pressures?

[Huckleberry]

So my thought is…

There is a high majority of $250K and above income earners along the coastal areas of SD, especially west of the 5.

I foresee housing in these areas receiving a major valuation blow if this Obama legislation is passed. Am I missing something here?

If this does get passed, what is the time frame it will take for these areas to start feeling significant downward pricing pressures?

[Huckleberry]

So my thought is…

There is a high majority of $250K and above income earners along the coastal areas of SD, especially west of the 5.

I foresee housing in these areas receiving a major valuation blow if this Obama legislation is passed. Am I missing something here?

If this does get passed, what is the time frame it will take for these areas to start feeling significant downward pricing pressures?

[Huckleberry]

So my thought is…

There is a high majority of $250K and above income earners along the coastal areas of SD, especially west of the 5.

I foresee housing in these areas receiving a major valuation blow if this Obama legislation is passed. Am I missing something here?

If this does get passed, what is the time frame it will take for these areas to start feeling significant downward pricing pressures?

[Huckleberry]

So my thought is…

There is a high majority of $250K and above income earners along the coastal areas of SD, especially west of the 5.

I foresee housing in these areas receiving a major valuation blow if this Obama legislation is passed. Am I missing something here?

If this does get passed, what is the time frame it will take for these areas to start feeling significant downward pricing pressures?

[blahblahblah]

[quote=AN][quote=CONCHO]Oh yeah, home prices would collapse. Also, people will moonwalk away from the mortgages en masse. I know I probably would![/quote]
Except for those who are paying less for mortgage than comparable rent, even w/out mortgage deduction.[/quote]

I think if they really phased the deduction out, home prices would drop drastically. Assuming cash-rich buyers pick these houses up at record low prices, what are they going to do with them? Rent them out! Bingo, lots more rental properties on the market will push rental prices down along with home prices.

I think it will be deflationary all around in housing, both in rent cost as well as home prices. People would moonwalk in huge numbers right into similar rentals discounted 30% also. Or, even better, they can just stop paying their mortgage, save the cash, wait 18 months for the foreclosure process to complete and then plop down cash for one of the new cheap houses!

In an immoral society, those with the most morals are destroyed first.

[blahblahblah]

[quote=AN][quote=CONCHO]Oh yeah, home prices would collapse. Also, people will moonwalk away from the mortgages en masse. I know I probably would![/quote]
Except for those who are paying less for mortgage than comparable rent, even w/out mortgage deduction.[/quote]

I think if they really phased the deduction out, home prices would drop drastically. Assuming cash-rich buyers pick these houses up at record low prices, what are they going to do with them? Rent them out! Bingo, lots more rental properties on the market will push rental prices down along with home prices.

I think it will be deflationary all around in housing, both in rent cost as well as home prices. People would moonwalk in huge numbers right into similar rentals discounted 30% also. Or, even better, they can just stop paying their mortgage, save the cash, wait 18 months for the foreclosure process to complete and then plop down cash for one of the new cheap houses!

In an immoral society, those with the most morals are destroyed first.

[blahblahblah]

[quote=AN][quote=CONCHO]Oh yeah, home prices would collapse. Also, people will moonwalk away from the mortgages en masse. I know I probably would![/quote]
Except for those who are paying less for mortgage than comparable rent, even w/out mortgage deduction.[/quote]

I think if they really phased the deduction out, home prices would drop drastically. Assuming cash-rich buyers pick these houses up at record low prices, what are they going to do with them? Rent them out! Bingo, lots more rental properties on the market will push rental prices down along with home prices.

I think it will be deflationary all around in housing, both in rent cost as well as home prices. People would moonwalk in huge numbers right into similar rentals discounted 30% also. Or, even better, they can just stop paying their mortgage, save the cash, wait 18 months for the foreclosure process to complete and then plop down cash for one of the new cheap houses!

In an immoral society, those with the most morals are destroyed first.

[blahblahblah]

[quote=AN][quote=CONCHO]Oh yeah, home prices would collapse. Also, people will moonwalk away from the mortgages en masse. I know I probably would![/quote]
Except for those who are paying less for mortgage than comparable rent, even w/out mortgage deduction.[/quote]

I think if they really phased the deduction out, home prices would drop drastically. Assuming cash-rich buyers pick these houses up at record low prices, what are they going to do with them? Rent them out! Bingo, lots more rental properties on the market will push rental prices down along with home prices.

I think it will be deflationary all around in housing, both in rent cost as well as home prices. People would moonwalk in huge numbers right into similar rentals discounted 30% also. Or, even better, they can just stop paying their mortgage, save the cash, wait 18 months for the foreclosure process to complete and then plop down cash for one of the new cheap houses!

In an immoral society, those with the most morals are destroyed first.

[Author]

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