Ax May Fall on Mortgage Interest Deduction. . . .WTF?

Ax May Fall on Mortgage Interest Deduction

According to Paul L. Caron at taxprof.typepad.com:

The Hill, Ax May Fall on Tax Break for Mortgages:

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.

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. 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. ...

Although the backers of the mortgage interest tax break defend it as a key incentive for people to own rather than rent their homes, some say that’s not so. A Brookings-Urban Tax Policy Center study found that the mortgage interest tax break costs more than $100 billion annually but does little to encourage the middle class and less wealthy to buy homes. “I’m not sure that we need to subsidize homeownership at all through the tax system,” said Eric Toder, the study’s lead author.

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One blogger wrote:

But it doesn't save anything. It takes more from people. To say it will save the government money is to assume the money was the government's in the first place.

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WTF?

Bet you probably haven't heard this yet. . . .The democrat majority in congress now wants to remove the interest deduction on our mortgages. 

I would think that if they wanted to stimulate the economy they would bring back the interest deductions on purchasing a new car and on credit cards, but oh no these bast*rds want to screw us over even more with our mortgages by removing this deduction. I don't know about you, but last year we paid in over $8,000 in interest on our home. Can you imagine what you will owe at the end of the year if this interest deduction is removed.

If your home is almost paid for this is no big deal to you, but you need to think of your children that may be close to purchasing their first home. If this congress would just cut spending and we got to keep more of our money each year this might be feasible. . . .but you know this money hungry congress will NEVER cut spending and entitlements.

This will mean that you will be paying much more to the government every year than you do now and no matter how you dice it or slice it. . . .it will be a tax increase. 

I thought Obama promised that "I won't raise your taxes one dime"

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