nmoira Posted March 12, 2009 Share Posted March 12, 2009 If, as seems the general consensus on the Mortgage bailout thread, home ownership is a privilege, and the government (i.e. taxpayers) should not be involved in subsidizing it, I would suspect that many (most?) here would be in favour of the mortgage interest deduction being eliminated. It doesn't seem right that renters and those who own their homes outright should subsidize those carrying mortgages. There is no equivalent deduction in my native Canada (though there are programs through which retirement savings can be withdrawn and paid back), and while I knew the interest was deductible in the US, I was surprised after moving here at the tremendous difference it can make in the tax owed. What says the hive? Quote Link to comment Share on other sites More sharing options...
Amy loves Bud Posted March 12, 2009 Share Posted March 12, 2009 I voted for it to be eliminated. You offer some compelling reasons, but in general I support a much simpler tax structure than the current monstrosity anyway. Quote Link to comment Share on other sites More sharing options...
suzf242 Posted March 12, 2009 Share Posted March 12, 2009 I voted "other" because I agree with Ron Paul's reasoning that the entire federal income tax should be eliminated, thereby cutting/eliminating federally-funded programs and returning the power of government to the state and local level. Since it doesn't look like that is going to happen any time soon, though, I don't see any harm in continuing the mortgage deduction. Suzanne Quote Link to comment Share on other sites More sharing options...
Parrothead Posted March 12, 2009 Share Posted March 12, 2009 I voted other because I just don't know. I have never studied it. We don't pay enough interest on our mortgage for it to matter to us. We go with the standard deduction. Quote Link to comment Share on other sites More sharing options...
Tutor Posted March 12, 2009 Share Posted March 12, 2009 Yes, it should be eliminated as part of an over-all simplification of the tax code. Quote Link to comment Share on other sites More sharing options...
katemary63 Posted March 12, 2009 Share Posted March 12, 2009 Yes, it should be eliminated as part of an over-all simplification of the tax code. :iagree: Quote Link to comment Share on other sites More sharing options...
KidsHappen Posted March 12, 2009 Share Posted March 12, 2009 I voted eliminate. I support doing away with our entire income tax system and moving to a fair tax. Quote Link to comment Share on other sites More sharing options...
Tree House Academy Posted March 12, 2009 Share Posted March 12, 2009 Gosh...When I think of the amount of tax I pay on my home each year and the fact that no one is forgiving MY mortgage or stopping our interest, it hardly seems fair. I know that people get in binds and bad situations and I understand that...but this does not just cover those select few people. This covers all manner of irresponsible and downright lazy, "won't work to save their lives" type individuals as well. It is like all government assistance programs...you have those that really NEED it and who are just down on their luck and this helps them get back on their feet...and then you have those waiting for a handout. My sister is one such person...always waiting on someone to do something for her. It honestly irks me to no end. I guess what I am saying is that, while I wish there was something to help those who are truly in need, it bothers me to help those who are just too lazy to help themselves. Does this make sense? Quote Link to comment Share on other sites More sharing options...
Nestof3 Posted March 12, 2009 Share Posted March 12, 2009 Yes, but I also agree that the entire code should be simplified. I also don't agree that a person can get so many deductions that they actually receive money rather than pay any federal income tax. Our mortgage interest is down to around $2000 a year, though. LOL Quote Link to comment Share on other sites More sharing options...
joannqn Posted March 12, 2009 Share Posted March 12, 2009 Add me to the eliminate it and simply to tax code to a flat tax system at the same time. Quote Link to comment Share on other sites More sharing options...
Spy Car Posted March 12, 2009 Share Posted March 12, 2009 Since I'm almost always in the minority here...I'll say keep it :D Bill Quote Link to comment Share on other sites More sharing options...
nmoira Posted March 12, 2009 Author Share Posted March 12, 2009 Since I'm almost always in the minority here...I'll say keep it :D Bill I dunno Bill, it's pretty close... Quote Link to comment Share on other sites More sharing options...
Spy Car Posted March 12, 2009 Share Posted March 12, 2009 I dunno Bill, it's pretty close... Scary :D Can I change my vote if I need too? :tongue_smilie: :auto: Quote Link to comment Share on other sites More sharing options...
nmoira Posted March 12, 2009 Author Share Posted March 12, 2009 morning bump Quote Link to comment Share on other sites More sharing options...
HRAAB Posted March 12, 2009 Share Posted March 12, 2009 Since I'm almost always in the minority here...I'll say keep it :D Bill Just so you're not alone, I also voted to keep it. But I also think the government needs to do something in regards to the mortgage crises. I'm just not exactly sure what that something is yet. Janet Quote Link to comment Share on other sites More sharing options...
Spy Car Posted March 12, 2009 Share Posted March 12, 2009 Hey, it's a tie (at the moment:D) Quote Link to comment Share on other sites More sharing options...
nmoira Posted March 12, 2009 Author Share Posted March 12, 2009 Hey, it's a tie (at the moment:D)I have to admit that this surprises me. Maybe some of those who voted to keep it could offer a rationale? I'm only partially playing Devil's Advocate here. I do believe that it should be eliminated -- in spite of the financial gain my family gets from it -- because I think there are other ways to promote home ownership, some of which are already in place (e.g.exemption from capital gains taxes on a primary residence in certain conditions). Quote Link to comment Share on other sites More sharing options...
Spy Car Posted March 12, 2009 Share Posted March 12, 2009 I have to admit that this surprises me. Maybe some of those who voted to keep it could offer a rationale? I'm only partially playing Devil's Advocate here. I do believe that it should be eliminated -- in spite of the financial gain my family gets from it -- because I think there are other ways to promote home ownership, some of which are already in place (e.g.exemption from capital gains taxes on a primary residence in certain conditions). I'll play Devil's Advocate. Giving an income tax deduction on interest serves a purpose of getting families into homes and keeping them there, by making homes less expensive in the here and now. This tends to re-enforce all the positives of community "rooted-ness" and civic stability. Offering a "capital-gains" advantage does the opposite. It incentivizes "selling" homes for short-term profit, and perpetuates the attitude that houses are primarily "investment opportunities" and will only encourage the sort of speculation that (partially) got us into this mess. Bill Quote Link to comment Share on other sites More sharing options...
Krista in LA Posted March 12, 2009 Share Posted March 12, 2009 I voted "other" because I agree with Ron Paul's reasoning that the entire federal income tax should be eliminated, thereby cutting/eliminating federally-funded programs and returning the power of government to the state and local level. Since it doesn't look like that is going to happen any time soon, though, I don't see any harm in continuing the mortgage deduction. Suzanne :iagree: Quote Link to comment Share on other sites More sharing options...
Jane in NC Posted March 12, 2009 Share Posted March 12, 2009 Not sure how to set up a poll but I wonder if those who to those who favor elimination of the mortgage deduction also favor elimination of deductions for dependents. Doesn't the "Fair Tax" also do that? Quote Link to comment Share on other sites More sharing options...
nmoira Posted March 12, 2009 Author Share Posted March 12, 2009 Not sure how to set up a poll but I wonder if those who to those who favor elimination of the mortgage deduction also favor elimination of deductions for dependents. Doesn't the "Fair Tax" also do that? Well, the thing about tax deductions (beyond the Standard Deduction) is that they don't apply to all groups. If one is deemed unfair because not all people benefit, then they would all be by definition unfair -- it's a zero sum game. Then the question becomes, should the healthy subsidize those with high medical bills? Should those who have finished their educations or will not be pursuing a higher education subsidize those pursuing higher education (via grants, tax deductions, direct college subsidies)? Should those without investments or those with good investments subsidize those who make bad investments and deduct the loss? Should those without children subsidize those with? Should those that are employed subsidize those that are not? But this poll is only about home ownership and subsidized mortgages. And, in this case, it seems to me the major beneficiaries of this scheme are banks and mortgage companies. Direct aid to homeowners makes more financial sense (if it's the homeowner that we care about) than, in effect, paying some of the interest that goes to the banks. Quote Link to comment Share on other sites More sharing options...
nmoira Posted March 12, 2009 Author Share Posted March 12, 2009 Bill, you're now part of the majority here. Go figure. :D Quote Link to comment Share on other sites More sharing options...
Spy Car Posted March 12, 2009 Share Posted March 12, 2009 Bill, you're now part of the majority here. Go figure. :D I should say something about the legacy of "states rights" in this country, and mention the related attitudes published in Ron Paul's newsletters, as a means to drive up numbers on the other side :D Bill Quote Link to comment Share on other sites More sharing options...
Stacy in NJ Posted March 12, 2009 Share Posted March 12, 2009 I voted "other" because it's a question that can't be answered without context. I'm in favor of simplifying our current federal tax structure. Doing away with some deductions in a vaccum seems silly. Quote Link to comment Share on other sites More sharing options...
nmoira Posted March 12, 2009 Author Share Posted March 12, 2009 I voted "other" because it's a question that can't be answered without context. I'm in favor of simplifying our current federal tax structure. Doing away with some deductions in a vaccum seems silly. My original intention -- and in retrospect, I should have stated this -- was to address the one issue with everything else being equal. I hadn't anticipated people voting "yes," but as part of a major tax overhaul... I was thinking of that more as an "other." Quote Link to comment Share on other sites More sharing options...
nmoira Posted March 12, 2009 Author Share Posted March 12, 2009 I should say something about the legacy of "states rights" in this country, and mention the related attitudes published in Ron Paul's newsletters, as a means to drive up numbers on the other side :D Bill :bigear: Quote Link to comment Share on other sites More sharing options...
Spy Car Posted March 12, 2009 Share Posted March 12, 2009 :bigear: Perhaps PM would be best. Bill Quote Link to comment Share on other sites More sharing options...
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