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View Diary: Romney's 17,000 home mortgage mistake (43 comments)

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  •  Deductions are deductions for a reason (3+ / 0-)
    Recommended by:
    cosette, Cassandra Waites, a2nite

    Consider: Home-owner with 17k in mortgage interest; no tax on income spent on the deductible category.

    Renter with 17k in medical bills; no tax on deductible amount.

    Home-owner with 17k in mortgage interest and $17k in medical bills; his deductions are 17k and he'll pay tax on his mortgage interest.

    That's not FAIR!

    This 'cap' is a non-starter. Don't even consider it.

    If we don't pay tax on medical bills then nobody should pay tax on income that went to medical bills.

    Change deductions if some category of expense is now deductible and shouldn't be, but treat everyone the same!

    Am I right, or am I right? - The Singing Detective

    by Clem Yeobright on Wed Oct 03, 2012 at 11:48:18 AM PDT

    [ Parent ]

    •  Addendum: A cap WITHIN a category is OK (1+ / 0-)
      Recommended by:
      decembersue

      Yes, there should be a maximum amount of mortgage interest that can be deducted - and there is.

      There might be a cap on charitable contributions - and there isn't.

      Medical expenses and state/local taxes are much more 'iffy'.

      But if you can take off your first 17k of state and local taxes then I should be able to do the same.

      The tax code MUST be fair.

      Am I right, or am I right? - The Singing Detective

      by Clem Yeobright on Wed Oct 03, 2012 at 12:00:44 PM PDT

      [ Parent ]

    •  I'm probably dense today (1+ / 0-)
      Recommended by:
      Clem Yeobright

      I don't follow you at all. I'm talking about a cap within the mortgage category (as you seem to agree with below). If Romney is capping the entire amount of all deductions, I agree, that's not good.

      •  The mortgage interest deduction is already capped (3+ / 0-)
        Recommended by:
        squirecam, Cassandra Waites, madhaus

        basically at $1 million of mortgage principal.

        IRS PDF

        Am I right, or am I right? - The Singing Detective

        by Clem Yeobright on Wed Oct 03, 2012 at 01:34:51 PM PDT

        [ Parent ]

        •  that cap is too high (1+ / 0-)
          Recommended by:
          Clem Yeobright

          in my opinion.

          •  Are you in California? New York? (1+ / 0-)
            Recommended by:
            madhaus

            Do you want to limit the state/local taxes deductions for people in those states too?

            Am I right, or am I right? - The Singing Detective

            by Clem Yeobright on Wed Oct 03, 2012 at 01:48:29 PM PDT

            [ Parent ]

            •  I used to live in California (0+ / 0-)

              and even with a good job, I could not afford a one million dollar home.  I was stuck in an apartment with no deduction at all. That's actually why I left.

              So why should someone who can afford that get that deduction? Why should they pay less in taxes than me?

              I also used to live in Canada, a country with high real estate prices and NO deduction. They have done far better than we have in terms of housing and unemployment for the last few years, so I don't believe that the world would end if our deductions were  tempered a little.

              •  incorrect (1+ / 0-)
                Recommended by:
                PeteZerria

                You fail to account for the situation many homeowners are in. As they are underwater, they cant sell, nor can they refinance.

                So if the tax break goes...so goes the home. And ANOTHER recession which will effect you, home owner or not.

                The MI deduction is the one tax break that the middle class truly gets. Sure, if you have multi-million dollar homes, let the tax break be limited for higher income earners.

                But Romney is going to hurt middle class homeowners. Those making less than $250k a year...or $200k...or whatever "level" it is this week....

                The #1 goal now is to elect Obama. Goal #2 is....First finish Goal #1.

                by squirecam on Wed Oct 03, 2012 at 02:11:53 PM PDT

                [ Parent ]

                •  I didn't suggest it be done all at once. (0+ / 0-)

                  Read my earlier comments. A lower cap would have to be phased in slowly, and I'm not advocating getting rid of it altogether.

                  I've been underwater for about three years, though it appears I'm back in the black due to a 20% increase in values in my area this year. So I very well know what "situation" many homeowners are in.

              •  You fail to understand (1+ / 0-)
                Recommended by:
                decembersue

                This is about tax breaks for upper middle income people, those who make well over the family median. These people are the ones who matter when it comes to tax breaks. Your vote and mine, and those who make significantly less than us? Not so important. It is okay to make us feel excluded.

                Coming up next: why people earning $250K per year are "middle class".

                •  it effects you (0+ / 0-)

                  Another mortgage crisis will effect you, whether you are "upper middle income" or not.

                  Obama has defined $250k and under as middle class. So this tax break does hurt the middle class.

                  Not to mention those making 150k or less as well. Just look as the OFA response listed above...

                  The #1 goal now is to elect Obama. Goal #2 is....First finish Goal #1.

                  by squirecam on Wed Oct 03, 2012 at 03:09:32 PM PDT

                  [ Parent ]

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