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Negotiating chip or will Trump et al really push to reduce it?
Popular mortgage deduction could get a haircut in tax reform
The mortgage interest tax deduction has long been considered politically untouchable — until now, that is.
The hands-down favorite of taxpayers is back on the negotiating table as tax reform kicks into high gear, according to industry sources, even though no one from the Trump administration has said that out loud, and Republican leaders in Congress say not to worry.
"Saying they aren't going to get rid of it isn't saying they won't touch it," said one source who agreed to speak only on background. "There are clearly discussions going on around reducing the maximum of the mortgage interest deduction to the $600,000 range."
The mortgage interest deduction, which only benefits about 20 percent of taxpayers, is currently capped at loans up to $1 million for married couples who file jointly and at $500,000 for individual filers. The median value of a U.S. home just crossed the $200,000 market, according to Zillow, so not a lot of people make it to that cap. More than half of those who benefit from the deduction have incomes above $100,000, and they get 81 percent of the benefit, according to the Congressional Joint Committee on Taxation. The benefit cost the U.S. government $77 billion in 2016.
As recently as Monday, Senate Majority Leader Mitch McConnell said if you're worried about the mortgage interest deduction, "you can breathe easy." A rep in McConnell's office declined to elaborate.
Capping the popular deduction at loans no higher than $500,000 would affect only 4 percent of borrowers but 15 percent of the dollar volume, since the deduction is so skewed toward higher income taxpayers. Still, the administration could use it as a bargaining chip to change the standard deduction.
Altering the standard deduction so very few people will want to take it is "kind of an elegant way to water down, if not neuter, the mortgage interest deduction," said Guy Cecala, CEO of Inside Mortgage Finance. "If you're a taxpayer and your taxes go down by not taking the deduction, how can you say that's a bad thing?"
No question, however, that the industry, especially the National Association of Realtors, will lobby hard against any changes. While there is no evidence that the deduction spurs home buying, it does make certain homes more affordable for some buyers.
https://www.cnbc.com/2017/08/22/popu...ax-reform.html
If the left causes Americans to lose that deduction, and worse yet they are about to stop us from having the standard deduction go from 12500+- to double that 25000+- for tax year 2017, by obstructing Trumps tax cuts/ reform.
the political suicide for these germs continues at break neck pace
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What kind of country have we become?
One in which federal prosecutors can take “evidence” before a “grand jury,”
and that grand jury can “vote to indict” a former president for 91 alleged “crimes”?
This just In::: Trump indicted for living in liberals heads and not paying RENT
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Trump Is Coming back to a White House Near you
It's a bullshit deduction. Scrap the fucking thing. People who think they are getting ahead don't realize they are being screwed by a cabal of bankers and gobblement to keep you in debt. Debt makes you dependent on gobblement.
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http://scholarship.law.duke.edu/cgi/...61&context=lcp
I always find it helpful for people to try to understand the history of things.
The mortgage interest deduction is an accidental deduction that came about from passage of the 16th Amendment.
It wasn't intended to apply to home mortgages. Mortgages were uncommon until the 1930s when the commie gobblement of FDR gave a gift to mortgage lenders by creating Fannie Mae.
For most people a mortgage is a big loser. They never look at an amortization table and the MID doesn't even come close to reducing that impact
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Ain't happening, middle class benefit, and the last thing any politician in this day in age is going to do is offend the mythological middle class, big part of Schedule A, especially for first time home buyers
Althea (08-22-2017), Phantasmal (08-23-2017)
Take a $600,000 mortgage. Using 3.25% interest and a 30 year mortgage, you will pay back $340,000 in interest over the life of that loan.
No mortgage interest deduction will cover that
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dukkha (08-23-2017), Phantasmal (08-23-2017)
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