« | »

Dems May End Tax Break For Mortgages

From The Hill:

Ax may fall on tax break for mortgages

By Walter Alarkon – 06/08/10

The popular tax break for mortgage interest, once considered untouchable, is falling under the scrutiny of policymakers and economic experts seeking ways to close huge deficits.

In other words, this is an official trial balloon.

Although Congress last year rejected the White House’s proposed cut to the amount wealthier taxpayers can deduct for home mortgage interest payments, the administration included it again in its 2010 budget — saying it could save $208 billion over the next decade.

And now that sentiment has turned against all the federal red ink — and cost-cutting is in vogue — Democrats on President Barack Obama’s financial commission are considering the wisdom of permanent tax breaks such as the mortgage deduction and corporate deferral.

Ah, yes, Cost-cutting is so in vogue with Democrats – once they have rewarded their constituents and bought all the votes they think they’ll need.

But is there any doubt what “Mr. Obama’s financial commission” will finally recommend?

Calling them “tax entitlements,” senior Democratic lawmakers have argued they should be on the table for reform just like traditional entitlement programs Medicare, Social Security and Medicaid.

You remember all the “reforming” that Medicare, Social Security and Medicaid have gotten. We don’t either.

The new spotlight on the mortgage deduction and other tax expenditures comes as the Obama administration and Congress consider ways to reduce deficits the Congressional Budget Office (CBO) expects will average nearly $1 trillion over the next decade.

How about ‘plugging the damn hole’ and stop spending?

No, they would rather use this ‘crisis’ to put the final nail in the coffin of the construction industry.

Ending all of those permanent tax breaks would be one way of reining in debt, according to a report by former CBO Director Rudy Penner and other economists at the National Academy of Sciences. The other way to stop a rise in the real debt level without cutting Medicare, Social Security and Medicaid would be to increase all base tax rates and introduce a new value-added tax, which is levied on goods at each stage of production…

Don’t worry, the Democrats will manage to end “tax breaks” and increase “all base tax rates” – and “introduce a new valued-added tax.”

It’s what they do best.

This article was posted by Steve on Tuesday, June 8th, 2010. Comments are currently closed.

13 Responses to “Dems May End Tax Break For Mortgages”

  1. Reality Bytes says:

    So What?! Private housing will be extinct in a couple years anyway.

  2. mr_bill says:

    “No, they would rather use this ‘crisis’ to put the final nail in the coffin of the construction industry.”

    Right you are, SG. It wasn’t that long ago that Proreason and I were talking about the few industries that hadn’t been formally assaulted by this regime. Construction and retail were some of the very few that had not been targeted. I guess now retail is the last one on the list.

    Just some words to remember:
    “I pledge that under my plan, no one making less than $250,000 a year will see any type of tax increase. Not income tax, not capital gains taxes, not any kind of tax.” – b. hussein obama in Dover, NH.

  3. JohnMG says:

    Are they serious? Will they dutifully line up to commit political suicide by actually pushing this through?

    Come to think of it, committing suicide would be the more humane choice for any politician advocating this “reform” compared to what the tax-paying public would do to them.

    Should any of them actually advocate for this, I’ll stand corrected for saying they can’t a be that stupid!

  4. proreason says:

    I hope they try for this one.

    Instead of 956 Days, 19 Hours, 50 Minutes, 24 Second, the regime will be ended in the time it takes 100 million people to load 100 million guns and walk out to the curb.

  5. crosspatch says:

    First they talk about taking away our IRAs and 401Ks by simply confiscating our investments and converting them to US treasury debt, now they talk about eliminating the home mortgage interest deduction …

    These Democrats actually seem to be engaging in self-destructive behavior. I can not believe they are so far gone that they can rationalize that the majority of the people will go for this. That is unless they figure if the majority of voters don’t have IRAs, 401Ks, or own homes, the rest won’t care.

    Maybe that is the idea, the plan … put so many people out of work that they must liquidate their retirement funds and are eventually foreclosed on. Then once the majority no longer have any retirement fund or own their own home, they simply take the funds to cover federal dept and eliminate the mortgage deduction.

    The Democrats are the most dangerous enemy America faces today.

    • proreason says:

      The fact that they talk about this stuff so boldly says a lot.

      Obamy has also talked about means testing Social Security. And the health care rationing boards are only thinly disguised. The guy he wants to put in charge is a Kervorkian / Emmanuel type.

      None of those ideas are rationale for a politician who views his constituency as the great American middle class.

      So that means that they are not interested in the political support of 60% of the country.

      Maybe they are just blithering idiots. But if they blithering idiots, how did they manage a silent coup of the political system?

      Anyone who isn’t frightened by this stuff (head out of the sand, Bill O’Reilly) is the blithering idiot.

  6. bousquem says:

    Seems like for the democrats, the word “reform” stands for “swell the ranks of the program with our unwashed constituents who will bloat the rolls, suck even more goverment money, and sink the country even quicker”. I really wish we had people who understood basic finance and business running the goverment, not those whose idea of getting more money is to borrow and steal then spend that money and more on new programs. I saw watching Fox how one of the new ideas is for goverment agencies to find all these “savings” and cuts, then the agencies would get 50% of those “savings” back to spend. I don’t see how your saving for example 50 billion if you cut 50 billion from the budget but then get 25 billion to spend. Of course knowing the politicians in washington, they’ll spend that 50 billion and an extra 50 billion on top of that to prop up union pension funds and other goverment programs that are viewed as entitlements by alot of the country, or at least the democratic voting block.

  7. bill says:

    How about we halve the federal budget and see how that works out first.

    • Perdido says:

      If you want them to quit spending find out how to quit sending them money. And do it.

  8. coffeetime says:

    First, a few caveats. We’ve taken advantage of the mortgage interest deduction for decades, not just for our primary home but also during a brief time that we owned a boat. I also believe that government – federal, state and local – needs to drastically CUT SPENDING, just like families do in financially tough times. Having said that, I think that the mortgage interest deduction – in fact, ANY and ALL interest deductions – needs to be phased out. In short, the government shouldn’t be rewarding the cost of borrowing money, whether it is for personal or business use. Right now, we’re working as hard as we can (per the advice in Dave Ramsey’s excellent book “The Total Money Makeover”) to get completely out of debt, including mortgage debt. It isn’t easy, and it won’t happen quick, but it will happen, and we will be better off because of it. As far as businesses go, look at Apple, Inc. as a great example. They have zero debt, billions in the bank, and can pretty much pay cash for whatever they need. Last week, Apple just surpassed Microsoft in market cap. Heck, maybe being OUT OF DEBT should get a tax deduction!

    • BannedbytheTaliban says:

      Under the same logic the government shouldn’t give tax breaks or deductions for any social behavior, such has having children. They should especially avoid handouts like ‘cash for clunkers,’ the energy star appliance upgrade, and the ‘here’s $8000 please buy a house’ payout.

      The best thing to do would be to dump all tax breaks/incentives to the private individual by dumping the income tax and instituting the FairTax. It is the only way to remove the power to tax, i.e. the power to destroy as determined by SCOTUS, from the hands of the greedy, corrupt, ignorant, and incompetent politicians.

  9. Perdido says:

    The Housing Industry has been highly regulated (interfered with) for a long, long time. It starts with the financing and insinuates it’s way all through the building trades.

    Think about it a minute, why should there be a deduction for interest on a home? It’s so silly for people to think they are “gettting something” in the way of a piddly interest deduction when they are being brutalized by the income tax enforcement complex.

    Learn the Income Tax Laws.

  10. crosspatch says:

    Milton Friedman had the right idea when he suggested that the federal budget be limited by constitutional amendment to a certain percentage of GDP. This would allow the budget to expand when the economy expands but also forces spending down when the economy contracts.

« Front Page | To Top
« | »