Do you support eliminating the mortgage interest tax deduction?

[Earth_First]

Poll question: Do you support eliminating the mortgage interest tax deduction?

Yes, no, please elaborate.

[onenote]

1. you should have other options in the poll

such as elimating it, or scaling it back, for mortgages above a certain threshold. I'm not sure that the same level of deduction is necessary or appropriate for a $1 million dollar mortgage as for a $200,000 mortgage.

[spooky3]

27. that's my opinion too -- subject to area/zip code differences

that others talk about in other posts in this thread.

There is a huge cost difference across different cities and areas of the country.

[valerief]

2. Who are the foot shooters who voted yes? nt

[handmade34]

4. who would vote yes??

this would really hurt a lot of people... investment property, second homes, different story

[valerief]

8. Several did. Must be those visitors from the other side. nt

[lamp_shade]

9. Only 11 showed up so far. There are many more.

[DURHAM D]

13. Investment property and second homes are two different issues.

[handmade34]

31. I know n/t

[hughee99]

3. Just in case you have managed to stave off foreclosure so far,

have we got an expensive little surprise for you. Now the bank and government can fight it out over who seizes your home first.

[DesertFlower]

5. many people would lose their

houses if it were not for the deduction.

on the other hand if its a rich person, yes.

[Big Blue Marble]

6. To eliminate the mortgage deduction,

would have grave implications for the real estate market which is already in depression. It would make
home ownership unaffordable to many more, negatively affect the price of homes, and further reduce jobs in
this sector. Shear stupidity on so many levels.

[Gormy Cuss]

22. If it has a negative impact on unit prices, that makes it MORE affordable

not less.

What IS negative about that price drop is that current owners lose equity.

[Big Blue Marble]

28. I partly agree with your point.

The purchase price would be less that is true. On the other hand, the monthly payments would take a bigger bite out
of spendable income as they are now subsidized by the tax savings of the deduction. I can more easily afford a $1000 payment,
if the during the early years of the mortgage, the government is paying 150 or 250 of that payment.

That makes home ownership more affordable to many.

[jonthebru]

7. no

No,no.

[Blue_In_AK]

10. Not on primary residence.

Second or third homes, boats, RVs -- no problem.

[shanti]

15. +1

[SoCalDem]

11. keep it for homes valued under $500K

eliminate it for ALL 2nd homes
and for homes that exceed 3 times annual gross income
(this would prevent people from buying more home than they can "afford", using nothing or little-down... then bailing when loans re-set, since all they are paying is interest anyway)

[FSogol]

17. Middle Class homes in Fairfax County (VA) and San Franciso exceed $500k

Your idea is good, but I'd set it at $650-750k.

[Maru Kitteh]

23. 750K buys a freakin' mansion here. How about basing it by zip code?

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=439&topic_id=1573770&mesg_id=1574106

[SoCalDem]

24. area average could be calibrated

:)

[Yo_Mama]

12. I support a partial end

- No deduction for any but the first home (primary residence at the time).
- Capping the deduction at 90% of the conforming loan limit for your area. (it is ridiculous to offer a tax deduction on a place worth 5 or 10 million with a mortgage along those lines.)
- Phasing out the cap for earners with total incomes (MAGI) exceeding the SS cap by quarter of SS cap. In other words, current cap is $106,800, 1/4 is 26,700. Thus if your total income (including nontaxable) is $106,800 + #26,700 or $133,500, you only get 75% of whatever mortgage interest deduction you would otherwise. If your total income is $106,800 + 2 * $26,700 or $160,200, you only get 50%, etc.

There is a legitimate societal interest in helping persons to buy homes. However there is no legitimate societal interest in funding the purchase of non-primary residences, and I am very concerned about the relative effect of the higher SS taxes in stripping lower income earners of the ability to save.

I think this is a decent compromise.

[JHB]

14. Only if affects mortgages made after a set future date

Grandfather in all existing and in the works mortgages. Don't pull the rug out from people who have already taken mortgages based on the assumption they would have the deduction.

[jschurchin]

16. Yes

But I am also in favor of reinstating the estate tax. Then again when you have no skin in either one, it really doesn't matter, now does it?

[JoePhilly]

18. Other.

Setting a cap makes sense. Droping it for seocnd homes also makes sense.

But if you remove it all at once, millions of middle class folks get hit with a large increase in taxes.

And you depress home values further.

The rich don't make their money on this deduction, but it does help the middle class get into home ownership.

[Maru Kitteh]

19. Yes - on 2nd, 3rd homes etc and also over a certain threshold like up to the 65% in your zip code.

So in other words, if your home (not the land, just your domicile) is valued at the 80th percentile in your zip code you only get the deduction up to the same amount as your neighbor down the street whose home is valued in the 65th percentile.

[mmonk]

20. No. It is currently too battered.

Housing used to be counted on in bringing us out of recessions. Anything that keeps it down will not help the economy.

[boston bean]

21. I must be on the wrong DU. Where is the other one?

[laylah]

25. As a legally separated woman

of 60, I live in our "2nd home" that was bought for me so I would HAVE a home. So, I disagree on eliminating the interest tax deduction. By filing joint Federal taxes, he is able to claim the interest, off-setting the $12k a year he pays my health insurance I would otherwise, not have.

Now, if this were a vacation home, that would be a different story.

[Bluenorthwest]

35. GLBT couples are denied this right, even when we are actually

couples not 'legally separated'. You are able to file jointly when you are living separate lives, and that makes me sick to my stomach. How unfair.

[FSogol]

26. Why would someone here vote, "Yes, completely?" C'mon fess up.

:shrug:

[WheelWalker]

29. I'll bite.

Eliminate the deduction and reduce rates. The mortgage interest deduction isn't available to renters and others who don't own real estate. Perhaps it's an anachronism from the day when only white, male property owners could vote. Blesses those who have money and burdens those who don't. Like my dad always said, credit is for those who don't need it. But it does follow the Golden Rule: (Those with the gold make the rules).

[Coyote_Bandit]

30. Another guess - there are some people who

do not believe in taking on debt for any reason - even a mortgage. I could see how they might feel penalized for living below their means, saving their pennies for a long tome and then purchasing a small fixer upper - all while others get years of tax benefits for taking out those mortgages.

Apparently, they fail to recognize that their financial freedom has greater value than that piddly little tax credit.

Nonetheless these folks have a point of sorts. They are being penalized for not being a revenue source for the banksters.

[tallahasseedem]

32. Hell no.

That is a great deduction, very helpful. Hell, that is one of the only breaks the middle class can get on taxes.

[MicaelS]

33. What deduction to those renting get? None, so why...

Do those who buy a home think they should be so special as to get a tax break?

[NutmegYankee]

34. Rent would go up.

The landlord has the mortgage.

[Bluenorthwest]

36. Never rent from anyone who does not own outright

I never have. The landlord does not always have a mortgage, and those who do should be avoided. Yep.

[Yo_Mama]

37. It doesn't affect commercial property

Accounting and taxes for rental properties is handled completely differently, so this is a non-issue. They don't get the mortgage tax credit. They do get to deduct all their costs plus depreciation against the rental income.