If you cut the mortgage interest deduction, what is the effect on the #1 investment vehicle of the middle class? If I lost 10% of my equity, my wealth in my mid 70's, when I need it, is going to look grimm. Saving me income taxes on no income isn't going to help.
Mortgage interest deduction encourages debt and should be eliminated, but that's not politically viable
Mortgage interest deductions don't help the middle class all that much. It's only worth anything after itemizing, so your first $12,000 in interest (+ charity) doesn't even have any effect (for a married couple). At a 4% interest rate, you'd need a mortgage of $300,000 to get ... no deduction. It's only the mortgage amount over that where you'd really get any deduction, so its only the upper-middle class that really gets much from it, and even that is only early in the mortgage. And since it takes off the top of your taxes, the wealthy get a much higher subsidy on their interest than the middle class (39% vs 25% or so). But to answer your question - it shouldn't make too much difference. Home values are based in part on mortgage rates because that determines the payment you can afford. Long-term, taking out the mortgage subsidy would lower home prices, which would make homes more affordable and reduce your property taxes.
Property tax can also be itemized. Neither property tax nor interest can allow you to itemize by themselves, but combined, they usually do.
Do you have a clue how banks, our national economy and wealth creation works? Here's what you should have learned in Middle School: http://www.investopedia.com/video/play/multiplier-effect/
The Donald is surging! Wall Street Journal http://blogs.wsj.com/washwire/2015/06/23/trump-surges-in-popularity-in-n-h-taking-second-place-in-suffolk-poll/ The New York developer and reality television star is second among 2016 presidential candidates in a new Suffolk University poll of New Hampshire Republicans – behind only former Florida Gov. Jeb Bush.
WHOA. That is amazing. Sorry for my delay, guys, I was DEALING DRUGS and RAPING a while ago... this Mexican took a break to come and comment on how surprising it is that he's in second place. Back to my criminal activities at the university now... :grin:
There's a difference between borrowing and government-subsidized borrowing. Commodore is right on that part - there's no reason the government should be subsidizing mortgage interest, and mostly doing so for wealthier people and/or larger mortgages.
Couric can barely hide her contempt for Cruz, but he parries her with ease and grace. <iframe width='640' height='360' scrolling='no' frameborder='0' src='https://news.yahoo.com/video/yahoos-katie-couric-talks-live-200000415.html?format=embed' allowfullscreen='true' mozallowfullscreen='true' webkitallowfullscreen='true' allowtransparency='true'></iframe>
Cruz does seem like a very smart guy. Unfortunately, I think he may literally be a psychopath -- charming but manipulative, self-centered, egotistical, with no regard for others and never any sense of guilt.
If you're a smart pubbie, you're gonna sidestep Obamacare and Gay Marriage like a dog turd on the sidewalk. Alas, Ted Cruz is not a smart pubbie.
Cruz isn't campaigning to actually be elected President. He's just securing his spot on the wingnut grifter circuit. Therefore, it's in his best interest to rile up the rubes as much as possible.
TO me they all suck. They all seem to have zero charisma, poor public speaking skills, lack of general knowledge and overall they all seem to have very low IQ's.
Gifford sort of nailed it. It's not smart to attack gays, immigrants, etc. and cozy up to hated mega giant corporations if you want to win a general election for president of the United States. It IS smart to do those things and cozy up to old, rich white people if you want to maintain a permanent paid role at the top of the political foodchain. Ted Cruz will be a senator from this state for as long as he wants and then he can step aside to run for a different high office of this state OR go run some think tank OR write a bunch of books and give inflammatory speeches. Regardless of what path he chooses, he has locked up a lifelong income that will make him a rich man forever. Pretty smart.
