patrick.net

Because it does Nothing, unless you live in San Francisco and the interest on your Million dollar 1200 sqft home, then equals more than the Standardized deduction. In the real world where the price of you house was reasonable in the first place, and the interest rates are at historically low.
Nancy Pelosi's neighbors are the only ones that really benefit by this break.
Anytime we can fuck over California Liberals I say lets do it. Because it doesn't benefit me on my mortgage worth a damn.

The Republicans will never let this go away. It favors Republican voters MUCH more than Democrat. You won't be f$%*ing Liberals--it'll be conservatives.

tatupu70 says

The Republicans will never let this go away. It favors Republican voters MUCH more than Democrat. You won't be f$%*ing Liberals--it'll be conservatives.

Hilarious!

You got one thing correct, in that its not going away. Not sure how you arrive at the conclusion that it benefits repukes so much more then demtards

errc says

Hilarious!
You got one thing correct, in that its not going away. Not sure how you arrive at the conclusion that it benefits repukes so much more then demtards

Take a look at the % of Rep. voters making more than 100K household income and then take a look at the % of Dem. voters that make more than 100K and get back with me.

Or take a look at % of Rep. homeowners vs. % of Dem. homeowners.

ahhh.... I see the troll is at it again...

Ruki says

Cap Shuddup is correct: It will kick the SF-Boston-NYC liberal middle to upper middle class in the balls way more than Reps kicking it in Texas. Big time.

lol--OK, let's see how it plays out. When Obama proposes ending the deduction for those earning more than $250K, do you think it will be the Dems or Reps screaming class warfare??

You guys really live in a fantasyland.

Ruki says

Not about that. It is about the distribution of Reps to Dems living in overly hyperpriced real estate markets.
But of course, you refuse to see that. Clearly.

Yes it is. And the Reps live in the higher priced areas. Period.

Loook at the most expensive zips in America and then look at how they vote in Presidential elections and get back with me.

Looks like the spineless GOP have caved in to NAR pressure

GOP in Compromise on Mortgage-Interest Deduction

http://blogs.wsj.com/washwire/2012/08/21/gop-in-compromise-on-mortgage-interest-deduction/

Ruki says

That isn't how it would work. All proposals ever made involve simply capping the amount you can deduct. Your income won't matter.

lol--really? You don't think that there is perhaps a connection between the amount of interest on a mortgage and the income of the borrower??

Ruki says

And define 'expensive'

If you need me to tell you what expensive means, then you shouldn't be arguing anything. Perhaps a remedial 3rd grade class?

Ruki says

You are clueless about this entire issue.

Nope-I understand it pretty well. The size of the house or the amount of land involved is completely irrelevent. What matters is the size of the mortgage. Period.

Strategic Renter says

Looks like the spineless GOP have caved in to NAR pressure
GOP in Compromise on Mortgage-Interest Deduction

More likely they caved to Koch pressure.

Smart rich people would finance, and let THEIR money make more than their low interest rates, right?

CL says

Smart rich people would finance, and let THEIR money make more than their low interest rates, right?

Depends on their risk tolerance. Mortgage prepayment is a guaranteed return while the performance of stocks/bonds/mutual funds is not guaranteed.

I agree that the deduction should be eliminated. It actually doesn't benefit any buyer, ever.

It just allows people to borrow more money than they otherwise could, forcing you to bid against them and driving up the price. The higher price you have to pay negates the deduction.

The only beneficiaries are the banks.

Of course eliminating the deduction will be politically difficult, because it will lower house prices back down to the unsubsidized market level.

If the deduction were to be eliminated, they should either grandfather in those who bought before the law is changed or send a nice check to compensate the previous buyers.

This is Washington, if they talk about it, surely it means nothing will be done for a decade. It's a triple green system where house, senate and president have to all agree, which is nearly impossible.

Major tax reform has been discussed forever. Obama can't even undo the temporary bush tax rates, nevermind MID.

and yes, the MID primarily benefits buyers in SF, NY, Boston, LA, DC, etc. It's a fair system, pay more tax, get more break.

Ruki says

Then the top 25% of income earners who pay 70% of total income tax revenues

Did you forget that they get 90% of total income?

Ruki says

sigh. I guess you can't tell the difference between having a $400k mortgage vs a $700k one then, by your own words.

What the hell are you talking about?? Do you even know what you are trying to say?

Ruki says

More like the other way around. See, I nailed your ass with your own gross illogic. You couldn't defend, so you resort to ad hominem name calling.

Nailed my ass? Seriously? Are you trying to score some technical point? Do you disagree that the ending the MID would benefit Reps more than Dems?

Do you disagree that Republicans in Congress would NEVER let any bill pass that ended the MID?

If not then give it up.

It's a fair system,pay more tax, get more break.

They're not getting a break for paying more tax, they're getting a break for paying more mortgage interest(to the TBTF banks, where's the fairness in that?). Which means the government is encouraging people biting off more mortgage then they need chew, by dangling this carrot for them.

Supposedly, it "costs" about 100Billion per year, but I assume that's just a figure on what the government loses on revenue directly from income tax filers utilizing the deduction. What about the layers of implications and those costs? Untold opportunity costs in the usfedgov encouraging stupidity

Ruki says

Cap Shuddup is correct: It will kick the SF-Boston-NYC liberal middle to upper middle class in the balls way more than Reps kicking it in Texas. Big time.

Very true and would certainly help the economy by dragging CA into the real world...more competitive. After all we were much cheaper back in the 70s-80s compared to other liberal dominated states in the north east. As such CA saw great
investment boom in business.

Anything to bring prices down to reality makes sense.

Ruki says

No, I do not disagree that ending the MID would benefit Reps more than Dems...because Dems will get hit harder than Reps. Thank you for agreeing with me!

Yes--I misspoke on that one. You honestly think that Dems will get hit harder than Reps? I'm shocked. I thought Dems were the party of freeloaders, welfare recipients, etc. Now they are the job creators too? Awesome. How do they not win every election?

Ruki says

Oh, and the Dems would be against it also because of the reasons I already outlined -- even if you are so totally clueless to see that (either that or you're simply trolling).

Exactly which reasons were those? I don't recall you posting any reasons.

errc says

Which means the government is encouraging people biting off more mortgage then they need chew, by dangling this carrot for them.

The idea behind creating MID was due to much HIGHER interest rates back in the day. It was designed as a "Tax Relief Program".. but with interest rates so low there is no purpose to have the MID any longer.