The mortgage deduction may mean little to the wealthy but for the middle class who own their home, pay a mortgage, and have seen everything else rise, it means lower taxes which is money back in their pocket. It can also make a difference when people go to buy a house as the tax deduction means you can get more house for your money.
The war on the middle class continues today with Republicans talking about eliminating the mortgage deduction. Why not eliminate the loopholes that have allowed people like Romney, hedge funds, and oil and gas owners to pay less interest then then middle class in income taxes. Mortgage interest, medical, state taxes, and charitable donations need to stand at least for those making under $250,000. I actually have no problem with those standing for everyone for their main property.
Do Republicans want to send the housing marking into a tailspin by eliminating the mortgage deduction in order to make Obama look bad?. Note to Republican leadership: You lost and Obama is not running again. Middle class Republicans are starting to turn on House Republicans for bottling up the bill that would continue tax cuts on the middle class. They never had the Democrats support but now they are losing Republican support some of which they may never get back.
Republicans need to listen to Ben Stein and quit thinking like a millionaire and remember the roots a lot of them came from which was not millionaire status.
9 December 2014Stein: Eliminating mortgage deduction is "foolish"
The "Fiscal Cliff"
(CBS News) The battle over how to reduce the federal deficit continues this week in Washington. One of the suggestions under consideration doesn't pass muster with our contributor Ben Stein:
My late father, the economist Herbert Stein, had a few favorite quotations.One of them was from a European thinker named Oxenstierna, if I have that name right. The quote went simply, "Observe, my son, with what little wisdom the world is governed."
This comes to mind as our nation is convulsed by fiscal problems, especially a titanic budget deficit.
This bipartisan mess, caused by GOP tax cuts that went too far and Democrat spending that went too far, is stirring talk of the need for tax increases and spending cuts.
Some of this - tax increases on the very rich - makes perfect sense to me.
But one of the ideas getting noodled around is just plain foolish. That's the idea of junking or severely limiting, the deduction for tax purposes of interest on home mortgages.
Look, we are just barely limping off the bottom of a residential housing catastrophe, and home buying and building are finally, after a genuine nightmare, reviving.
If we could get housing roaring back, that would go a long way towards full recovery for our economy.
Obviously, taking away the home mortgage interest deduction is the very last thing the housing market needs.
I'm not saying it would hit every home buyer, but a home is an investment. If we lower the return on an investment, well, you get the picture.
This bad idea is apparently meant to substitute for tax increases on the wealthy.
But this is strange. The rich, by definition, are RICH. That's why they are CALLED "rich." They can afford to pay more tax.
The middle income home buyers, or some of them, need that home mortgage interest deduction to buy.
So we have the question: Do we want to clobber housing, hurting millions of homebuyers, builders, construction workers and timber people? Or tax the people who have two Cadillacs and a Bentley?
How can this even be an open question?
Observe, my friends, with what little wisdom the world is governed.
The last statement by Ben Stein is a keeper and describes the obstructionist Republicans we see today in the Congress. A few are waking up but a lot more need to see the light and realize they are heading down a path to defeat in 2014 because of their stubbornness in refusing to work with Democrats, The American people deserve better out of their elected representatives and the majority are disgusted with the Republicans putting Party over Country once again.
Most Congressional Republicans still don't get it as they are demanding to keep the tax cuts for the wealthy (who can afford the tax increase) while continuing their attacks on seniors, poor, and middle class taxpayers. This time they are going after social security and medicare to help balance the budget while at the same time refusing to pass the bill in the House to make the Bush Tax cuts permanent for the middle class. Not a way to win votes.
Are Republicans so scared of Grover Norquist that they will go off a cliff rather then vote to raise taxes on the wealthy? Today's GOP is pitting their wealthy donors against the middle class and poor. IMHO it is a dumb move to tie Social Security and Medicare to tax hikes on the wealthy because those two programs are not part of the budget as President Reagan said:
“Social Security, let’s lay it to rest once and for all… Social security has nothing to do with the deficit. Social Security is totally funded by the payroll tax levied on employer and employee. If you reduce the outgo of Social Security, that money would not go into the general fund or reduce the deficit. It would go into the Social Security Trust Fund. So Social Security has nothing to do with balancing a budget or raising or lowering the deficit.”
Read More about the Fiscal Cliff at CBS:
- The president heads to Michigan and will talk again about the economy and the middle-classDecember 10, 6:00 AM
- The two main negotiators met at the White House Sunday - their first face-to-face meeting in weeksDecember 09, 5:04 PM
- Meanwhile, deficit guru Erskine Bowles' cohort Alan Simpson believes lawmakers are playing politics with the "cliff"December 09, 12:39 PM
- In their weekly addresses, President Obama and Sen. Marco Rubio, R-Fla., don't budge from their positions regarding taxes on the wealthyDecember 08, 6:00 AM