Economists Born with Silver Spoons Shouldn’t Talk Out of the Other Side of Their Mouths

Reblogger Ed Macias
Real Estate Broker/Owner with Real Estate Teammates BK3322137

Original content by Judy Chapman

Speaking to a real estate forum sponsored by the U.S. Chamber of Commerce, Mark Zandi — the Analytics Chief Economist for Moody’s — made the argument that limiting mortgage interest and property tax deductions for homeowners was a good way to cut the deficit.

He went on to argue that the real estate sector has received more support than another other industry, and it was “time to give back.”

Haven’t homeowners already given back through lost property values, short sale nightmares, and outright foreclosures?

The ability to deduct mortgage interest has been with us since the inception of income tax in 1894.

The ability to deduct property tax as well as state income tax (or sales tax in states that don’t have income tax) goes to the core of the concept known as ‘double taxation’. Double taxation occurs when income that has already been paid out in the form of other taxes should not be recognized as income and should not be taxed.

Removing the ability to deduct mortgage interest and property taxes will simply destroy what little is left of the real estate market.

I’m just wondering if Mr. Zandi needs a new silver spoon to replace the tarnished one he must have been born with.

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JUDY CHAPMAN | “Your House ... Your Future ... My Job”

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© 2007-2010 www.activerain.com/blogs/OrlandoforSale by Judy Chapman ALL RIGHTS RESERVED. Portions of this content may be used with attribution.

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Rainmaker
158,372
Rita Gibbons
MacDoc Realty LLC - Fredericksburg, VA
The Gibbons Group

I agree with your assessment.  The tax breaks that come with homeownership are an important part of the America Dream.  

The US Chamber of Commerce doesn't work to help citizens - they don't want financial reform, wall street reform, etc.  A number of businesses have withdrawn from this organization.  Apple, PG&E, and PNM withdrew because of the chamber's position on global warming,

Jul 31, 2010 05:47 PM #1
Rainer
133,351
Bryan Watkins
LRA Real Estate Group - Mesa, AZ

Very good points. There will not be reform to take away the home interest deduction unless the BIG change comes to tax reform. It is too large a change.

Jul 31, 2010 06:27 PM #2
Rainmaker
1,025,654
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

The mortgage interest deduction has been there to help with home ownership and it should be there.

Jul 31, 2010 06:41 PM #3
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Rainer
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Ed Macias

Miami FL-REO Property Management Multifamily
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