Today, United States Congressman Dingell (Democrat- 15th District in Michigan) unveiled a draft proposal that would seek to eliminate the mortgage interest tax deduction and add a 50 (that's fifty cent...not the rapper for the kids reading this) cent tax increase on unleaded fuel. For homes over 3,000 sq. ft., the current mortgage interest tax deduction would be "phased out" and eliminated entirely for those wiith homes over 4,200 sq. ft. I wonder if that includes a basement? According to Dingell, the tax increase is for global warming (yet Diesel vehicles are excluded) and the AP article that removing the mortgage intereest deducation from those with larger home "is only fair" since they are the ones moving out into the suburbs, creating urbal sprawl. So I guess my wife Tabitha and I better not have more than one child since there won't be enough space for family and dogs in the government mandated electric car that will be parked outside of a 500sq. ft. studio condo. Talk about a party divided. On the one hand, you have those from that party who are seeking to be president likening our current economy to that during the Great Depression and here you have Dingell disagreeing with these unbelievable taxes.
The part that is most interesting is the guy who is drafting this bill: Representative John Dingell (D-Michigan). Having this guy deciding on matters relating to taxes for the county is no worse than appointing The Cookie Monster to the Health and Nutrition Board with the FDA. I say this because the economy in his state is in crisis in many cities and using it as a model for which to decide our economy on would be like taking parenting advice from Michael Jackson or Brittany Spears. So here's the breakdown of Michigan's economy (the highlights only):
- 7.2% Unemployment Rate in August 2007 (up from 4.2% 10 years ago) - Courtesy the Bureau of Labor Statistics
- North Carolina's is 4.8% and South Carolina is 5.6%
- Michigan reported 15,565 foreclosure filings in August 2007, up 127% year over year. In the state, there are 1 foreclosure filing for every 288 households. Wayne County accounted for 60% of those filings, where there was a foreclosure filiing for 1 in every 87 households. Wayne County is the District of our favorite Congressman.
- During the same period, North Carolina ranked 22nd, South Carolina ranked 35th (Higher is better) - Courtesy of Realty Trac
- In August 2007, home prices in Detroit fell 7.1% while Charlotte North Carolina experienced a 8.4% growth. - Yahoo Finance
- According to the state of Michigan's own property tax estimator, the taxes for a $200,000 home in Wayne County (primary residence) would be between $4,600 - $6,600 annually.
- A similar $200,000 single family detached home would be between $1,800 - $2,300 depending on location. In Union County, just south of Charlotte, the property tax would be closer to $1,000 - $1,300 annually estimated. - CMLS
So the question once again is....what is Congressman John Dingle (D-Michigan) thinking? Clearly, high taxes and unemployment have benefitted his state for so long that maybe we should be so fortunate.
Sincerely;
Jonathan Osman
The Charlotte House Hunter
Charlotte NC Homes, Charlotte Real Estate
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