Is the Mortgage Interest Deduction Soon to Join the Dodo Bird?

This is why we need to vote for the those who don't believe in redistribution of wealth next week.

This will hurt the middle class. But with our deficient at an unsustainable future for our kids and grandchildren they have to come up with some ways to raise more funds. Since private citizens are the only producers then they have to go to us.

Not the government's money?? Better get that word to Congress and the administration - because they sure do think it is ALL their money.

I can't figure out what they'll have to redistribute once everyone quits working and looks to big brother for food and shelter.

Remember to VOTE!

This is an important issue that we all need to keep an eye on. I can't imagine, at the point we are at in our economy right now, that this would get more attention than a passing sneeze, but we never know. Thanks for the post.

Mike, thanks for alerting me!  I'll keep an eye out on that one.

I recently read that neither keeping nor getting rid of any tax break will fix the budget.  We have simply promised more than our citizen's can deliver in tax money, bottom line.  So it's interesting that arguments from a politician on either side of the aisle is actually incorrect and not taking care of the true problem.  As you said, we need to curtail government spending to make the budget balanced!

Thanks for the post!

Sounds like NIMBY. 

I think Billy #88, has a valid point.  Canada has not experienced the problems we have
(foreclosures) because of stricter banking regulations and maybe the reasons he mentioned.

I know I did not buy my home thinking, oh I get a tax break.  I bought it because I would like a roof over my head that I will own someday.

Chances are most Billionaires do not have mortgages... or debt!

There is this whole big fallacy about keeping a mortgage even when you can pay it off!  WRONG.

Mike~ Obama is the "Jimmy Carter" of the 21st Century...he will be a one term President!...the Republicans WILL take the House on Nov 2nd, and turn this ship around!

Wow, @Manny #95 - who would've thought?  I just hope the FairTax is fair, because if there's not a cap on it, you know it's going to go up.  If MID goes away, probably will erode housing prices, as well as interest, so what difference will it make, except to the MIDDLE CLASS, who are being raped by their own government.  Manny has a point.  Great post, it'll be interesting to see how this plays out.

Mike,

Your concluding thoughts hehre spell out exactly the problem - the power would be transferrd from the politicians to the people... and the politicians can so easily demagogue the issue for the voters... as they are doing in many races around the country right now... One opponent of the FairTax even complained that this would mena he loses the mortgage interest deduction! (We can lat him keep his deduction!)

Good job Mike! You are a patriot!

Thanks for you post Mike!  In my mind, it is just one more way to short the people who are doing the right thing, not walking away from their underwater homes.  Interest deduction is the only benefit right now in home ownership verses renting.  As you mentioned, it isn't costing them anything, they are just getting less of our money to spend, that we have worked so hard for.

Mike,

I agree, it's not a subsidy as you describe it, but it is the government collecting fewer taxes from us to promote home ownership, so in effect, the MID acts as a subsidy.

And what a break it is....the biggest write-off there is for most folks who use it, probably.  It works out as a much bigger break (benefit? subsidy?) for the well-heeled than for the middle class, and all homeowners benefit from it, so it's probably here to stay.

#94 Yes, the super-rich probably don't have mortgages, so they will miss out on this tax break.

Dear Mike,

I cannot imagine government economists could be that dumb. As my neighbor Margaret (#14) mentioned, if you leave the money in the hands of the public, you maintain housing prices (as low as they may be now) and let people spend the money on goods and services, which in turn also have taxes attached to them. There are probably many other cost-saving measures that would be more effective in reducing the deficit and would not bring the economy to a screeching halt in the process. Could there be an election around the corner?

Mike: This is another bass-ackward plan." First we'll raise your taxes, then we'll trim the budget."

Once they do this we will never see the credit back, because they will never cut entitlements and earmarks. Eventually this will result in devaluing real estate, but first it will push up rent rates.

Dear # 103 Dorte..."government economists" is an oxymoron. The same as "military intelligence".

If there's yet another way to mess up the real estate business the new incoming 2011 Congress will no doubt find it, and that will not be a Democratic majority that does it, BTW.

This idea if passed will further erode values in southern nevada. The las vegas market is fragile and this will destroy what is left.

This will never fly. This deduction is way to popular. It's one of the few things that helps the middle class.

Elimination of the mortgage interest deduction will remove thousands of dollars from the pockets of homeowners who are already struggling. This will cause more foreclosures which will deepen and prolong the recession.