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. 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. 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?
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