WASHINGTON — At 70, Frank White isn´t a typical first-time home buyer. But a key reason he ditched his Altadena apartment and bought a three-bedroom house in nearby Pasadena has been common for decades: He wanted the tax break. "I pay very high taxes, and I have no deductions," said White, who owns an apartment rental business with his two brothers. Now, after purchasing the $500,000 home in November, he´s looking forward to writing off the interest on his 30-year mortgage.
From what I´ve read, Canada has stiff downpayment minimums and no interest deduction, but about the same home ownership rate as the US does. So maybe the assumptions of the market-interventionists are wrong? Maybe other factors matter, maybe in some ways more than the numbers do?
Things like equal treatment in the mortgage market? Like predictability in the laws? Stability in the laws? Less social-engineering in the laws?
It´s certainly wrong to subsidize the purchase of second homes. Why, the people who build them can certain collect unemployment like everyone else.
And that people making over 100K account for three-fourths of the deductions? You know who makes more than 100K? Two teachers, a cop and a nurse, a small-business owner who supports five or 10 workers. Yeah, punish those plutocrats!
In truth, there are worse deductions. It makes the most sense to remove them all and institute a flat tax, as a poster noted. But that takes away the power of pols to deal with people who want their own special breaks. It´s a racket, and we´re paying for it.
Economists have a word to describe unintended consequences - externalities. One of the externalities of the Reagan tax reform was to push people into second mortgages, lines of credit or remortages to keep the tax deduction for the purchase of a car, boat, etc. That put alot of people in jeopardy because housing prices were inflated by generous appraisals so that banks could lend the money. Now, if president zero and the democrats in congress change the IRS rules, there will be a loss of balance, also called stasis, in the economy. It would be a stupid move. But I do call him President Zero for a reason. He is the dumbest man in the room.
The guy in LA was hoping to be grandfathered but the mortgage interest deduction is one of the biggest ponzi schemes. The real estate and banking community push this which only increases their income and not the homeowner.
You can make an argument for and against the mortgage deduction, but changing it now would tank home values like we´ve never seen. That would really hurt folks who own their homes free and clear the most. Their asset value would be cut in half probably, overnight. Others would just walk away from their mortgages. So to all those L.dotters cheering for this to go away, don´t be upset when your equity is halved.
For those of us with good incomes, this is the ONLY tax deduction left. We will be really screwed up because we have what you people assume is a "2nd" home, but it really just a tired old lake cottage. It still has a mortgage, has already lost a third of its value, and we planned our finances with the deduction in mind. So losing our equity I 2 homes by a third AND the deduction would suck! You are not necessarily "rich " if you have a second home. Like us, you may now be poor!
Why do we let these dimwits control this conversation?
This is not something that "COSTS" the government. It SAVES money for the government because people who own their own homes and have assets are less dependent on welfare and government handouts. Homeowners make more responsible citizens and are active in the communities where they live. Sure, there are wealthy who also take advantage of the break, but who cares? We regular people outnumber the "rich" in droves.
They are after all of us, they just use the buzzword "rich" to get everyone worked up in a frenzy and to make us forgetful.
Better to go over the cliff and all pay the Clinton rates than to give Dems a chance to pick and choose elements of the tax code to extract more revenue. Stop all of Obama´s Earned Income Credits and raising taxes will become a lot less popular.
The mortgage is on the property, not the person. Assuming the home buyer is creditworthy, there are no assurances in the mortgage business that any borrower will live for a year or five or ten. The loan will remain as a lien against his property regardless of where he is.
Everyone I know will lose their homes. We are not rich and we have bought what we could afford. We´d be screwed. It is the only way the average person can own and I cannot believe some of you think this would be a good idea. Thanks for nothing. A little unfair to change the rules at this point, don´t you think? I´ll stop now before I say something that gets me banned. I guess you all got yours so too bad for the rest of us, eh?
What business is it of the government´s how I spend my money, or how you spend yours? The mortgage deduction is actually a political handout not just to homeowners, but to well-heeled bankers, home builders and real estate sales companies. End it.
Bought our very modest second home with thoughts of retirement. Well, the retirement thoughts have been pushed back several years and the value of both places have diminished. The tax deduction is helping us personally stay above water, but just barely.
If there wasn´t a personal income tax (and whether the 16th was properly approved is one for those late night table discussions) then this whole mess wouldn´t exist and this discussion wouldn´t be taking place. Think about that.
The mortgage interest deduction inflates the cost of housing and we would be better off without it in the long run. The problem, of course, is that those who are depending on it would face a loss in the value of their properties and would be paying taxes just like those who have paid off their mortgages. The existing system is another case of the frugal subsidizing the profligate.
If someone would truly lose their home if this deduction goes away, then they cannot afford that house to begin with. Canada proves this deduction is not necessary for a very healthy home ownership rate. We pay high taxes, appreciate the deduction on our two mortgages but it won´t "break" us if it goes away.
Chip Wilson, the billionaire founder of yoga clothing retailer Lululemon, has resigned as chairman over controversial statements about body size. Mr Wilson told Bloomberg TV in November that complaints over "see-through pants" were due to overweight women. Some women´s bodies "just don´t actually work´´ for Lululemon trousers, he said. In March, Lululemon had to withdraw one of its yoga trousers from shops after complaints about the sheer fabric. The company blamed the problems on style changes and production issues, but the complaints continued.
US President Barack Obama may have moved the masses attending Nelson Mandela’s memorial service with his stirring eulogy, but it was his grinning "selfie" with the Danish and British premiers that set social networks abuzz. In a candid moment captured by a photographer, Denmark’s Prime Minister Helle Thorning-Schmidt can be seen holding up her smartphone, with Obama lending a helping hand, as they pose for a picture with David Cameron, all three of them smiling broadly in their seats at Soweto’s World Cup stadium.(Snip)Mashable, the news and technology website, ran the photograph under the headline: ‘‘Dear Obama: Funerals are no place
While much was made about President Barack Obama´s handshake with Cuban President Raul Castro at Nelson Mandela´s memorial service, the U.S. leader also gave a warm greeting to Brazilian President Dilma Rousseff, despite recent tension between the two countries. As Obama took his place among other world leaders and dignitaries before he addressed the memorial, he shook hands, embraced and patted them on the shoulder. When Obama arrived at Rousseff, he kissed her on both cheeks The U.S. and Brazil jointly agreed in September to postpone Rousseff´s state visit to Washington - originally scheduled for October - over controversy over
LUNENBURG, Mass. —Investigators say the mother of a Lunenburg teen whose home had racist graffiti sprayed on it last month is a "strong suspect" in the case. According to the search warrant, Isaac Phillip´s mother, Andrea Brazier, replied "OK" when an FBI agent said she was the one who spray painted graffiti on the house. Watch Report "Most of the leads we have followed up throughout the investigation have led back towards the house," said Lunenburg police Lt. Michael Luth. When asked if police considered Brazier a strong suspect, Luth responded, "I would." Court documents also claim Brazier made false statements and then asked
The fight for Christmas took a hit this week when politics bigfooted a troupe of adorable little ballet dancers performing “The Nutcracker.” MSNBC’s Chris Matthews is scheduled to interview President Obama on Thursday night at American University as part of the “Hardball College Tour.” MSNBC approached AU to host the chat, and officials jumped at the chance for a free, hour-long commercial for the university and its students. But the interview, announced Tuesday morning, abruptly kicked the Ballet Petite’s rehearsals of”The Nutcracker” out of AU’s Greenberg Theatre. That didn’t sit well with the ballet school’s staff, teachers and parents who
Well, it’s not like there’s any danger of this stuff crossing the porous border into the US… Tepojaco (Mexico) (AFP) – Mexican authorities scrambled Wednesday to find a truck containing “extremely dangerous” radioactive material used in medical treatment that was stolen by two gunmen two days ago, officials said. The white Volkswagen Worker truck was transporting a teletherapy device containing cobalt-60 when it was stolen Monday in the central Hidalgo state town of Tepojaco, near Mexico City, according to the International Atomic Energy Agency. (Snip)So they found the container, just not the incredibly dangerous material that was in it. The
A fourth student at the University of California Santa Barbara has come down with a strain of meningitis similar to the one that sickened eight Princeton University students in New Jersey, authorities said. The California students began getting sick about three weeks ago, according to a university statement. One student had to have both legs amputated, ABC News has learned. "He´s from my hometown. I hope he is doing well," said David Burkow, another student. "It´s just kind of scary because there is a constant fear." The California school has suspended social events, including sorority and fraternity parties, to avoid
On his way to the podium at the memorial ceremony for former South African president Nelson Mandela, President Obama walked down the line of dignitaries, greeting other leaders there to pay their respects. Among the hands shaken: that of Cuban leader Raul Castro. Obama neither made a special effort to shake Castro’s hand nor to avoid him. A snub might have been awkward: In his speech, Obama praised Mandela’s “greatest gift” as “his recognition that we are all bound together in ways that can be invisible to the eye; that there is a oneness to humanity; that we achieve ourselves by
The Obama State Department has finally released a second round of photos revealing the harrowing devastation wrought by a terrorist attack on the U.S. Consulate in Benghazi on Sept. 11, 2012. The new photographs depict rampant damage to the consulate. They show charred walls, smoldering fires, Arabic graffiti defacing exterior walls, and scattered debris throughout. The extent of the damage would lead any reasonably serious person to conclude that this was a cold, calculated attack, carefully coordinated to mark the 11th anniversary of Sept. 11, 2001. Unfortunately for the American people, the Obama-Clinton-Rice cabal that led to the Benghazi cover-up was
A black fashion student says he was brutally attacked by a gang of Hasidic men who shouted anti-gay slurs at him while he was walking through Williamsburg after a night of partying, the Daily News has learned. Taj Patterson, 22, was headed home to Fort Greene around 4:30 a.m. on Dec. 1 when he says more than a dozen ultra-Orthodox Jewish men began assaulting him on Flushing Ave. and yelling, “Stay down, f----t!”
A “presidential selfie” featuring President Barack Obama, British Prime Minister David Cameron, and Denmark’s Prime Minister Helle Thorning-Schmidt at Nelson Mandela’s memorial service began making the rounds this morning, but it’s the person not included in the frame who caught everyone’s attention: As anyone with two eyes and a Twitter account has noticed, Michelle Obama does not appear amused. Of course, though a picture says a thousand words, not all of those words are necessarily true. FLOTUS might not have even known the photo was taking place. Or she could disapprove of funeral selfies. Either way.
Just how much do many Hollywood liberals hate conservatives? In an interview with Playboy, Ben Affleck said, "When I watch a guy [on film] I know is a big Republican, part of me thinks, I probably wouldn’t like this person if I met him": PLAYBOY: You developed a political profile campaigning for presidential candidates Al Gore, John Kerry and Barack Obama. How did that come about? AFFLECK: I grew up in a house with a mother who was a teacher and a Freedom Rider—very left-wing Democrats living in a heterogeneous working-class neighborhood. I picked up a lot of those values there, and I
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Barack Obama has arrived in South Africa to lead the American delegation at a memorial service for former South African President Nelson Mandela in Johannesburg. But his party is reportedly stuck in traffic and he is said to have arrived late at the stadium for the ceremony. [Snip] But Mr Clinton, Mr Carter and his wife Rosalynn have all traveled separately to the event. According to reports, Mr Obama and his delegation are stuck in a lines of traffic caused by tens of thousands of people making their way to the event. Mr Obama is among the foreign leaders who