The case for eliminating the mortgage interest deduction really isn't dependent on anything to do with the wealthy or income inequality - it's simply a dubious tax deduction which is of questionable use. The fact that it benefits higher income taxpayers more is a collateral issue - the main point is that it's costly and kind of pointless. And by the way, a lot of the recent impetus for this came from Mitt Romney's campaign which alluded to this idea at certain phases, not from some sort of "soak the rich" ethos.
I don't have a problem with raising taxes on the wealthy...actually I am for it. I also agree on the capital gains tax increase...it should be treated as ordinary income and taxed appropriately. I agree with your comments that the system favors the wealthy. I do, however, have a major issue with the $250k family income threshold as being "wealthy" and therefore deserving major tax increases. There is a lot less disposable income at that level than say, $500k to $1m, and the $1m+ group are really the ones getting most of the benefits of the last decade or so in widening the income gap. And Sam, I don't see it as pointless and have no idea why you mention Mitt Romney...I am not a republican nor a democrat (in fact I was not a Romney supporter) and don't get why people always bring discussion back to the two parties. Perhaps it's due to the more militant right and left wingers in the forum starting ridiculous threads almost daily with the sole purpose of antagonizing the other party supporters...
Because he was among the first people recently to seriously float the elimination of the mortgage break, which is what this thread is ostensibly about.
Certainly you can debate the specific amount - and that, unfortunately, varies by location so there will be no "right" answer. Wealthy in New York is different than wealthy in rural Idaho. That said, we're only talking about marginal incomes. So the person making $250k wouldn't be taxed at any different rate. And if they made $300k, only the last $50k would see an increase in taxes.
This is a great point that many people don't recognize. Having tax breaks and such ends up driving up the prices of homes and is a subsidy towards RE Agents, Mortgage Lenders and Builders. Similar to the bs that SLM gets away with regarding government guarantees on student loans, these efforts inflate the prices for consumers. Currently Housing deflation has been horrible for the wealth effect and the banking sector so while this is probably a good idea, it may not be a good idea now unless there were income levels attached to it or phase out for houses above $500,000 for example.
Yes, I make over $250,000 and while my income may not put me in common with someone making $100,000,000 a year, it is still a large amount of money when compared to how a majority of Americans live and how I lived years ago. Try living on $20,000 a year and then live on $250,000 and tell me that there is not a stark difference.
Agreed. My wife and I combined make about half of $250k and are very comfortable. I can't imagine how nice it would be to make double what we make now.
Mortgage deduction, charity deduction, and deduction for state/local taxes should be first deductions cut. All income should be treated equally.
