It's time to rethink mortgage tax breaks

  • Article by: ERIC WIEFFERING , Star Tribune
  • Updated: November 20, 2010 - 10:42 PM

The Great Recession demolished one myth about owning a house, that values never go down. Now it's time to jettison the one about tax deductions for mortgage interest payments.

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elwher2Nov. 20, 1010:57 PM

OH MY GOD ! The rulers of this country are talking about making permenant tax breaks to the rich and starting to tax the middle class more. Wow, the upper class has gotten INCREDIBLY richer over the last forty years while the middle class has shriveled like a raisin. Yet they want to take more money from the middle class while lightening the load on the upper class. This shows pretty clearly who calls the shots in the US. Only the rich and/or the deluded would call us a democracy.

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vespa50spNov. 20, 1011:38 PM

Phase out the mortgage deduction. All it does is distort the housing market.

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jjsbrwNov. 20, 1011:43 PM

elwher2: Why so upset. This is the best country in the world in which to be rich. You don't seriously think rich people are going to do anything that would change that, do you?

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foxnewsfanNov. 20, 1011:51 PM

Change it but don't eliminate it. Make it so only the very first mortgage ever on the home is deductible. Take away the deduction when the home is refinanced or home equity is used (let's stop using our homes as a bank account to finance cars and vacations). Only allow mortgages up to 120% of the national median sale price to be deductible. If you want a home that is priced higher than this you can go with out the tax deduction.

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vikings19Nov. 21, 1012:18 AM

Mortgage credit drives pricing? Please...how stupid are we to believe that the mortgage tax credit is what sets fair market values of homes? That's like saying the sales tax drives the price of bread and pasta. Come on people, wake up. Maybe the Feds can cut spending in the 2011 bugdet across the board by 10% and let us poor saps keep that little pittance of a credit which lessens most of our tax burdens by anywhere from $500-1000 on average I would guess.

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ORIOLE75Nov. 21, 10 6:00 AM

Any politicain who favors keeping the Bush Tax cuts for the rich, and whacking the mortgage interest deduction for the rest of us, please stand up. You will never get another vote from me.

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wildblueNov. 21, 10 6:35 AM

How about getting rid of all deductions? Lower the rate, no deductions, keep a progressive tax table. Done. A person with a college degree shouldn't need to pay someone to figure out what they owe.

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asdfasdfNov. 21, 10 6:46 AM

I'm not an economist but I wonder if this wouldn't cause big trouble for home owners... If they don't allow us to deduct interest housing values will drop a bit which means tax revenue for cities will drop which will lead to another property tax increase to cover the difference (we loose the tax deduction and we get hit with higher property taxes.)

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b127oaktreeNov. 21, 10 7:28 AM

Our Democrats deserve improved defined benefits and larger tax credits.........We need less focus on incentive and more entitlement.

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torvoldNov. 21, 10 7:40 AM

Democratic congressmen don't pay taxes anyway, makes it easier to be self righteous about increasing taxes on the rest of us.

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