What! I bought my home to save taxes. Yes, but you also paid an inflated price because of the crony capitalism - interest tax deduction.
The value of a home today is based on its true value + the tax deduction received due to the mortgage interest + the tax deduction received for the real estate taxes. Were these not a cost factor in the sale/purchase the price paid would be something lower. What that value is we won't know until the deductions are eliminated. What is a ready, willing and able buyer - willing to pay - for a home where he receives no favorable tax treatment? {crony capitalism}
The mortgage interest deduction did not grow up overnight so it must be eliminated the same way. I propose to eliminate the mortgage interest deduction 5% every year for 20 years or maybe even slower say 3.3% for 30 years.
Once all the " tax favors" are eliminated we will have a true laissez-faire real estate market which will be more stable and less subject to fluctuations. When you eliminate government intervention in commerce you have buyers and sellers dealing with each other as equal traders - value for value.
Let's eliminate the real estate tax deduction too!
Tell your congressman YOU support elimination of the Mortgage Interest deduction AND all crony favoritism for real estate.
NOTE: I own 17 rental homes so I have more to lose than most and still favor its elimination.
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