5 Beefs With the Home Mortgage Interest Deduction

Interest deduction is the main stay of home ownership

Interest deduction on any home other than the home of residence is a farce, but the deduction on one's primary residence is the true mainstay of home ownership, especially for those with limited income. If the deduction is taken away by those in government that wish to re-enslave this nation then so be it. As to a Harvard professor being a "god" of information I doubt it. Far too many of those from that and other Prestigious instutions are themselves leeches upon society. As to government being the answer to problems, my 65 years has taught me one thing. Government is the problem and is exactly the problem out forefathers that formed this nation were concerned about. We have come to the point in this Nation that the governors are of a certain ilk that have no true interest in the public welfare but only in their own pocketboooks and egos and have come to the point that they are too involved in their own personal power struggle to see that they are in the process of destroying this nation by taxation and overburdening the working people of this nation with the same. They have run our manufacturing base off shore with over taxation thinking that we the people will always survive what ever ills they put upon us and continue to fill their pockets and ego bags. I am at the age that even though I gave some of the best years of my life in military service, I have little hope for my grand and great grand chldrens' future and so the same for this Nation. No grandiose speeches by great orators with voices that command attention will change the ills of this nation. We have become the sheep that Franklin and Jefferson worried about and our elected heirarcy have become the elitest that they abhored. All this talk about the great depression and that FDR brought us out of it is nothing but b.s. put forth by public educaters that have forgetten or maybe never did have the power to use their minds for anyting but memorization and regregitation. What brought the world out of the 1930's was the three madmen of the world that treid to conquer a people that had the infrastructure in place to fight back. WE NO LONGER HAVE THAT INFRASTRCUTUE AND TO REBUILD IT WOULD TAKE GENERATIONS NOT A FEW MONTHS OR YEARS. Home ownership in the right and truest form and one of the basis of freedom that we can still enjoy and with taxation of that property by relinquishing the interest deduction on one's priomary residence will destroy that for at least 90% of those who now are responsible enough to pay their mortgages FIRST, instead of trying to "keep up with the Jones" as the bulk of those who have defaulted on their mortgages have done. Irresponsibility by the governors and the governed is the problem and the stupid idea that this nation will prevail in ANY situation better than did the Greeks of the Egyptians or the Romans. Our time is at hand and 1984 is just a few decades late. We will be but a footnote in history within five decades on the present course.

DHG of GA @ Feb 27, 2009 01:29:37 AM

Second Homes

Professor Glaeser is correct, though I doubt that his idea will get much traction (that's the problem with sacred cows). One place we could easily start is eliminating the mortgage interest deduction on second homes. While a beach house would be nice, I don't think having tax-payers help me to buy one really serves any public purpose. I can't think of any legitimate reason for the government to subsidize the purchase of a second home. Wait, I forgot, there are 535 people in Washington who mostly all use this deduction. Never mind.

Joe of NY @ Feb 26, 2009 06:56:03 AM

Home Mortgage Interest Deduction

1. It would make sense to have an income tax system where no interest paid is deductible, and no interest received is taxable.

2. In reality, the biggest tax loophole is the standard deduction. People who pay no interest, modest state and local income tax, and donate almost nothing to charity get a great windfall from the standard deduction. One can legally scam the system by bunching state and local income tax payments and charitable contributions every other year. Take the standard dedcuction one year, and itemize the next. I have done this for years.

Jake of OH @ Feb 26, 2009 00:24:28 AM