The Real Third Rail of Politics

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Deduction encourages industry

Totally disagree with your pal. The deduction is a relief from our tax burden, keeping it out of the money sinkhole that is our government. It encourages investing in our homes, which is a driver for that whole industry. The building of equity enables other investments. From that standpoint, that deduction gets leveraged to support investment.

Mike Ward of KS @ Apr 22, 2008 11:12:30 AM

Grandfathering?

There are folks who are able to make their current mortgage payment only because of the interest deduction. They could be in a rather tight spot if that deduction is eliminated -- unable to meet their interest payments in a housing market that is already soft. Would it be reasonable to gradfather the interest deduction on existing mortgages?
In any case, the effect of eliminating the deduction will be to drive house prices down. Is now the right time to do that? Should we wait until the housing market is a little stronger? It's kind of taken a hammering lately.

Kent G. Budge of NM @ Apr 21, 2008 17:55:41 PM

Renting is consumption

Is a home purchase "consumption"? Seems that everyone must have a place to live. Paying rent for that place is "consumption;" buying it outright is investment. And since someone is going to buy that house, whether it's a landlord or an owner occupant, the capital expended is the same - the only difference is in who is making the investment.

Tom Hanna of MO @ Apr 21, 2008 16:32:16 PM

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The Real Third Rail of Politics

Deduction encourages industry

Grandfathering?

Renting is consumption

Capital Commerce

Money

The Real Third Rail of Politics

Deduction encourages industry

Grandfathering?

Renting is consumption

Capital Commerce

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