Will home mortgage interest deduction be on the chopping block?

[SHRED]

Oct. 22, 1986 President Reagan signed a bill that eliminated interest deductions for consumer loans, which included cars, credit cards, etc.

Will home mortgage interest deduction remain or will they try and end it?

[PoliticAverse]

1. No, as it primarily benefits the well off. n/t

[SHRED]

4. The well off?

[PoliticAverse]

5. Upper income people who live in areas of above average housing cost. n/t

[SHRED]

9. All homeowners are not "well off"

[PoliticAverse]

10. Which is why I used the word "primarily" rather than "only". n/t

[SHRED]

23. Fair enough

[dumbcat]

12. All homeowners do not take the mortgage interest deduction

For many, the Standard Deduction is more advantageous. Or, as in my case, I don't have a mortgage.

[Drahthaardogs]

14. It depends, but to say you have to have an expensive mortgage

To benefit is dishonest

[mythology]

22. How unfortunate for you that isn't what was said

Note the word primarily. Speaking of dishonest.

[Drahthaardogs]

29. It was stated that it only benefits the rich.

Unless you know a lot of rich people purchasing Lancer mobile homes, that's not an honest assessment of who benefits.

[Drahthaardogs]

13. It benefits everyone who has a mortgage

Whether your home is $80,000 or $800,000

[PoliticAverse]

17. Actually no, it only benefits you if you have a mortgage and can benefit from itemizing

your deductions.

[Drahthaardogs]

19. True, but most people with a mortgage benefit at SOME

pOINT over it's life.

[titaniumsalute]

24. Your statement is odd

The majority of homeowners are not necessarily well-off. This tax deduction means a lot of people even with mortgages in the $85,000 to $100,000 range (many which can also be condos.)

[Bettie]

2. They'll end it

no doubt about it, it helps the middle class, so they don't want that.

[PoliticAverse]

7. Like with the "Bush tax cuts" it's not about whether it helps the middle class but that it helps...

upper income people more.

[still_one]

3. They won't remove it. It would be political suicide because I suspect it would cause a large number

of mortgage defaults

[Hoyt]

6. Doubt it. But if Standard Deduction is increase, MID's benefit may be reduced.

[CrispyQ]

8. The will try.

It will depend on how many people call & write their reps. Ultimately they want us to all rent, not own. Ownership is for the 1%. Get rid of the deduction, watch the housing market tank, buy up all the homes & rent them back for twice the amount.

[elehhhhna]

11. End it they will crash the economy overnight

[FakeNoose]

16. And they'll really piss off the one-percenters too

The mortgage interest deduction is how people can afford 2nd and 3rd homes, and vacation investments.

Take away that deduction and a lot of those houses go on the market for sale at the same time. Prices go down and everybody loses market value = very pissed off people who won't vote Republican next time. Or they'll quietly start financing a different Republican that will do things THEIR way.

Just sayin'

[elehhhhna]

27. Don't forget yacht owners

Don't forget yacht ownersbecause as long as there's a bedroom on the boat it can also count as a second home mortgage

[dembotoz]

15. i see a nation of real estate agents shitting their pants. deduction is what makes home ownership

possible for some

on the bright side it should increase inventory as those who needed the deduction decide to bail

[FakeNoose]

18. No, we all lose when too many houses go up for sale at the same time

Everybody's market value goes down when nobody is buying, because they're all trying to sell.

[Le Gaucher]

20. The way I see it

The super rich ( Republican Donor Class) probably dont need this or the offset on top marginal rate/ Corp rate will more than compensate its loss.


The poor dont probably itemize deductions and will be better off with higher decuctive

The middle class in the 100- 250 k range who are probably well educated and tend to vote Democratic are well and truly fucked. Because even the poor democrats wont come to their rescue as they will be happy with their bigger standard deduction.

Republicans are also eliminating the 401k tax deferment benefit beyond 2400 ( from the the current 18 K) .. I contribute full amount to my 401k and this , if true will be double whammy for me.

The tripple whammy is the removal of deduction for state and local taxes ( SALT) .. the Median House tax in my city ( Berkeley Heights NJ is about $13,000 .. NJ has some of the highest local and state taxes. The bastards are allowing businesses to deduct but not individuals.


Donald MOTHERFUCKER tRump is really sticking it to us.

[former9thward]

21. It will become irrelevant.

If the standard deduction is doubled, as proposed, almost no one will take the mortgage interest deduction. Its already limited with mortgages above $1 million.

[PasadenaTrudy]

25. Renters could use a break, too n/t

[brush]

26. If the repugs cut mortgage deductions they turn over the Senate, the House and WH to the Dems.

It'll never happen. trump might be but Ryan and McConnell are not that stupid.

[haele]

28. Some people think not - but the way it's written now, it only really helps the middle class...

so, yes - I think it will. If they're okay with doing away with state and local tax deductions - to punish blue state residents, of course - they're probably going to get rid of mortgage interest deductions - and probably deductions for educational costs.

For the middle class in a low-income red state, the mortgage interest deduction is probably only around up to $10K a year.
The GOP's current strategy of slashing itemized deductions and doubling the standard deduction takes care of that problem for most working class/suburban 3rd quintile and below homeowners in red states, so long as those homeowners are not the Quiverfull types with seven to ten kids.
The wealthy backers and most congress-critters tend to have more houses just that one primary residence per the tax code - if the family mansion wasn't already paid off to begin with.
Their interest rates are probably around 2% as it is; so the deduction on the interest of a 10 million dollar or so mortgage on the primary residence is probably far less than the totality of tax cut they're looking at the GOP handing them next year. So, they lose $1 for every $3 they're gaining. It's still a win for them.

It'll be a wash for most. From what little that's come out, American homeowners and those households who are in the 2nd and 3rd income quintile (annual income of $40K - $90K) will see their tax burden stay pretty much the same, while the lower income homeowners with a mortgage will be paying more with itemized deductions and personal exemptions slashed. The lower income renters may see a bit of relief (maybe from $500 - $2K for a household) - and the 5th quintile will make out.

The hardest hit under this new budget and "tax relief" will be the 1st and 4th quintile type Americans. While the GOP could care less about the former, the latter - even if they seem to be conservative - is the historic breeding ground for violent revolution once they start losing the edges of their educated and privileged middle class comfort zone.

Haele