Although many politicians have been toying with the unpopular idea of eliminating the mortgage interest deduction that allows citizens to deduct their mortgage interest payments from their taxes, the deduction made it through the latest round of negotiations unscathed[1]. Some lawmakers had hoped to cut this deduction as part of the debt ceiling compromise and had included language in an early version of the legislation that would lower the joint income level of homeowners eligible for the deduction. However, that proposal was eliminated from the final bill. While most homeowners and real estate industry groups are relieved that the deduction is still in existence, they have expressed concern that the 12-politician “super-committee” that will be tasked with finding another $1.5 trillion in cuts over the next decade will “diminish [their] influence” and make it more likely that the deduction will suffer alterations or eliminations in the future. Currently, around 35 million homeowners write off their interest payments[2]. The Treasury Department estimates that in the 2012 fiscal year, the mortgage interest deduction will cost the federal government around $100 billion.
[Note from Bryan Ellis: The notion that you "cost" the government anything by taking a mortgage interest tax deduction is absolutely ludicrous and should insult you profoundly. For a tax deduction to be a "cost" to the government is to suggest that all of your money and property belong to the government to begin with, and it's only by the "good graces" of the government that you get to keep any of your property or earnings at all. It's time that we all start to understand that the government is LYING to us when they say that a tax "break" represents a "cost" to the government. The fact is this: A tax - any tax - is a cost to YOU, because a tax is nothing more that the government's taking of your money/property under threat of duress or imprisonment.]
Do you think that the mortgage interest deduction might need to be amended or eliminated?
Thank you for reading the Bryan Ellis Real Estate Letter!
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[1] http://www.realestateeconomywatch.com/2011/08/mid-survives-untouched-by-debt-compromise/
[2] http://www.kansascity.com/2011/08/02/3054501/does-debt-deal-put-mortgage-interest.html
Here! Here! Your government is lying to you, folks! They are not your friend! They do not represent you! Instead, they represent big business, corporations and large banks, and they don’t care if it costs your your home, your job, or even your life, as long as their ‘cronies’ are rewarded, even when they break the law!
Wake Up America!
If the FairTax gets passed, we won’t need a mortgage deduction anymore. Why?.. because there will no longer be a tax return to complicate your life anymore. No need for a deduction when there is no return…right? The FairTax was heard in the Ways and Means Committee for the first time last week. It met its usual detractors, guys like Levin and Rangel, but it also was met with positive curiosity by some of the newer members. It’s going to take some time, but when the American people really learn what this is about, they will clamor for it. We will have to learn how to shift gears in the real estate biz, but it will be for the good of the country.
I am so glad you are not afraid to speak the truth. We need to work together and make sure to get our affairs in total order to be able to be free from this tyranny. I know there are a lot of possible things that can happen to correct this. I just hope that we can all kind of be on the same page when it does so that it’s effective.
Another Tea Party Patriot is reported to have said…
“The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.
“Most bad government has grown out of too much government.
“The two enemies of the people are criminals and government, so let us tie the second down with the chains of the Constitution so the second will not become the legalized version of the first.
“A wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor and bread it has earned. This is the sum of good government.
Thanks for your comment; we must always speak out against the thieves and liars. Can you imagine sleeping at night knowing your entire existence depends on the threat of violence not voluntary agreement! And too they swore a contractual oath the breach of which is treason. What ever happened to the consent of the governed? We need to figure a way not to participate with these reprobates because under law if you don’t control it you don’t own it! Life, liberty and what PROPERTY. Pax
The mortgage deduction will probably be eliminated, but that’s the least of our worries. The assault upon the American economy, upon capitalism itself, upon the Founders’ intent and principles, is absolutely comprehensive in nature and breathtaking in scope. Our only hope, IMHO, is widespread defeat of Dems and RINO’s in 2012, though at this point I’m seriously questioning our ability to hold out for another 15 months. The abyss yawns before us. If not yet actively engaged with your local “Tea Party” / 9-12 Project type group, then the time is NOW. The Dems are committed to the country’s destruction, and the GOP establishment thinks the creativity and work ethic of the American private sector will somehow keep the nation afloat, despite their endless abuse of nation in league with the Democrats. Not true.
So Tim “Turbotax” Geittner CLAIMS that the mortgage interest deduction will cost the federal government around $100 billion in 2012.
Taxpayers with a brain KNOW that the federal government will cost taxpayers (and their grandchildren) about $4 Trillion dollars that year. Any smart businessman can tell you that the way to fix that problem is to address the biggest expense first (the $4 Trillion dollars).
Nuts…. of all the things obama is and isn’t leading the charge to take away mortgange deductions isn;t one of them.. leave that inane trick to the tea party and conservatives who would rather have the middle class pay the taxes than the wealthy.. give me a break. and for those who think that big govenment is the problem..you gotta be kidding.. our present govn isn’t too big, it is too bought. corp america is calling the shots, the govn just goes along for the rids, literally, until they get out of office and take the job with the people who vote their vote in the first place. We did just fine with a big govn when it worked for the people.. last of that was in the 60′s or early 70′s. it has been donw hill sense.
If the mortgage interest deduction is eliminated there will be another glut of foreclosures. This deduction is the only advantage many homeowners have in keeping their underwater properties.
Just a point of information, Obama is the one pushing for the ending of the Mortagage Tax deduction. Those that do not know this need to spend a bit more time not reading the liberal rags that forget to report on anything that might tarnish the image of the Pres. Especially in this delicate time for him turning 50 and having some gray hair.
If we had a flat tax it would be more fair, as those 53 percent of the population that currently pay no federal taxes would then pay some federal taxes, as they should!
If some of you do not understand how the current tax structure works, then look it up!! Over one half of our population pays no federal income taxes, while the one earning more money pay all of the federal income taxes already. This crap about they need to pay more, as a fair share is like saying only home owners should pay taxes on municipal services, and renters should pay nothing! How far would that go? How fair would that be?
How would all the whiners out there wanting to increase taxes and people earning more money feel about only paying taxes to the city and county if you owned property? Only people with school age children would pay school taxes, (that might be a good idea however, maybe we would get better schools), renters would get a tax refund every year funded by the property owners!
So get real people, taxes are not progressive, it is only liberals with an eye on other people’s money that call taxes progressive. Everyone needs to pay taxes, not just the “rich” supporting the welfare of entitlements that so many have come to expect in this country!
While this article is well written, I am more than a little annoyed with your extreme tea party bias expressed in the headline on your email which implies the Obama administration is single-handedly responsible for attacking our real estate interest deduction. EVERY legislature has attacked this deduction since before you were born. It hasn’t even made it to anyone in the executive branch to see what they would do with it. I doubt it ever will with NAR and banks lobbying heavily against it. Think about it.
The comments are very illustrative. Most understand that government “is force.” – G Washington. Most understand that the founders understood that “government is the problem.” R Reagan There is still a sizable minority of regular citizens who believe that “equality” means having equal amounts of everything versus being able to achieve on an equal footing. These takers will never admit that they take.
I just had an in depth private conversation with an Assistant State Attorney General. He denied that the vision of the founders was relevant to “today’s world.” He denied the idea of life, liberty, property being essential for freedom. He sees government as the purveyor of good. While he acknowledges that connected persons can work the system, he feels that the system works just fine. He sees no issue with government types making decisions affecting peoples lives because the decisions require public comment. When I asked, “What are the limits to the police power?” He answered, “Whatever the constitution and statutes allow.” “And if a law is hurting people?” “Then work to get different legislators.” “OK.” I said, “And who is responsible for the harm that is done by the law?” “Government can’t be held responsible.” he said. “So, effectively, there are no limits to the creation of any law by today’s interpretation.”
Liberals and other Fascists just don’t get it. Since they don’t believe in a G-d Head, and G-d’s laws, they don’t want to have any limitations on mans activity. If it feels good, do it. That is emotion run amuck; intelligence not needed, the heck with the consequences.
I told the AG that the definition of Fascism is, “the control of the means of production.” This definition is from Websters, as late as in 1962, prior to the dictionary becoming politically correct. I said, “The control comes in the form of regulation. You own the property, but the government tells you how to use it. That’s control.” Then I asked, “How does it feel to be a Fascist?”
Let me ask all of you who think big government is really your brother, “How does it feel to be a Fascist?” You probably also think that the IRS is your friend.
God Bless America
CoachMitch