In light of Rep. Dingell’s proposal to eliminate the home mortgage deduction for houses larger than 3000 square feet, I wonder:
Should the home mortgage interest deduction be limited for houses under a certain square footage? Under a certain cost? Limited to primary residences? Eliminated completely?
{ 6 comments… read them below or add one }
Hi
This is an interesting development. I must read it fully over the weekend. Guess it stems from your earlier post (I think it was you) on what constitutes the middle class. So I guess it is all about the progressive method of taxation, in a way.
Absolutely, as well as priorities and tax policy. What do we think should be important as taxpayers?
it should be eliminated entirely. failing that, it should at least be limited to a primary residence. i don’t think any other country on the planet does this. yet many other countries have similar rates of home-ownership (60-70%). i think that congress should repeal it entirely. the standard deduction already limits it’s effectiveness for most normal folks. the mtg interest deduction should go away!
Jake -
You’re right about the deduction. I do not believe that Canada, for example, has a similar deduction and does have a similar rate of home ownership.
Regardless of its merits, the repeal or limitation of the mortgage interest deduction should not be an issue at this time.
The middle class is suffering just to make ends meet, as we are in a slowdown (recession).
After recovery, when additional revenues will be needed, the time will come for this discourse.
Jake joins Congressman Dingle (Bat) in his lack of understanding of this issue. Jake says, “the standard deduction already limits it’s effectiveness for most normal folks.” Look more closelyt at the internal revenue code. Mortgage interest is an itemized deduction and is among the primary reasons people prefer to own homes instead of rent.
I abondoned the Dems when they pledged their full faith to environmentalists. While I care for the environment as much as anyone, I don’t see further destruction of the value of homes as a viable solution to improve America.