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View Diary: Robert Reich Gets It Right (171 comments)

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  •  I sure as hell do support this (3+ / 0-)
    Recommended by:
    YucatanMan, murphy, blueoasis

    maybe $12,000 is the wrong level but we (the other people) should stop subsidizing larger or more expensive homes. Currently renters are subsidizing McMansions in most parts of the country. I realize that $500,000 is probably not a McMansion in most of California but maybe the house prices are just too damn high.
    My first realization that the housing market was going to crash was Paul Krugman's graphing of historical rental vz buying costs.  

    •  I bought my house 12 years ago. (5+ / 0-)

      The original mortgage payment was $1800/month.

      The house is not in the expensive cities nearby, but across the Sound where housing is much xheaper, so commute times from here are ling and commuting is usually by ferry. Pricey. Roundtrips for Charles for the month are over $100 and he walks on to the ferry and takes buses in Seattle.

      My house is 1207 square feet of finished space with most of that upstairs; only one room is finished in the downstairs, a room which isn't very large that we use for our computer room. It wasn't even a legal bedroom when we bought the house because it's too tiny to get a closet into. We are in a semi-rural area that's gradually being nibbled up by the small town nearby. This is not a suburb. There are still farms here. It isn't gentrified, and it isn't McMansion territory. Our house is a lot closer to a farmhouse than to anything else. We are on 5 acres, some pastures, a little, aged orchard, and a bunch of woods, with woods on three sides of us.

      This is no McMansion. Not even close. My late husband and I fugured out by ourselves, with no pushing from a bank or a seller's agent, what we could afford, and we told our buyer's agent the maximum we'd stick to. We let her know that even for the most special house, we wuld not go over $200,000, and we didn't. The house was $199,950. And for that, we had a mortgage payment without PMI (which we didn't have to endure; we did our own escrow, luckily) of $1800 a month, essentially all interest.

      Our leaders ad representatives in DC need to understand that people paying large mortgage payments like that are most often middle-class folks like us who are giving up almost everything else in order to get our dream house, which is a well-built 1978 non-tract house, and capping the mortgage interest deduction at $12,000 annually is going to hurt people in or near large metropolitan areas and across large swaths of the country. People who are nowhere near wealthy. Capping it at $24,000 a year or even $30,000 a year will protect many if not most of those middle-class homeowners and would-be homeowners, while still ensuring that the wealthy in their palaces pay their fair share. And never, never should the mortgage interest deduction apply to anything except the one dwelling that is the primary residence, no matter how many houses someone owns.

      Organ donors save lives! A donor's kidney gave me my life back on 02/18/11; he lives on in me. Please talk with your family about your wish to donate.

      Why are war casualty counts "American troops" and "others" but never "human beings"?

      by Kitsap River on Tue Nov 13, 2012 at 09:45:18 PM PST

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      •  I agree, 12,000 is too low considering housing (1+ / 0-)
        Recommended by:
        Jersey Girl

        prices in many areas of the country, especially the northeast. Prices did get too high, but the market appears to be leveling out, at least around the Philly area where it never went quite as nuts as it did in places like FL and AZ. Still, prices are high enough that $12,000 would not cover the interest on most homes around here.

        You are also spot on about the deduction applying only to primary residences -- we should not be subsidizing vacation homes.

    •  It seems like poor planning to assume (0+ / 0-)

      that interest rates will always be low. The cap shuld be on principle, not interest.

      Let us all have the strength to see the humanity in our enemies, and the courage to let them see the humanity in ourselves.

      by Nowhere Man on Wed Nov 14, 2012 at 05:50:34 AM PST

      [ Parent ]

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