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View Diary: Killing Sacred Liberal Cows, or What Economists Think About the Economy (105 comments)

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  •  you sound so sure (0+ / 0-)

    facts are facts and the facts are that most people don't look at the cost of the house they are buying as much as what the size of their payment will be.  The mortgage deduction is factored into those calculations.  Take it away and payments go up so in turn prices would have go down.  Measures like this are examples of the law of unintended consequences.  The deduction was set up to help people afford homes but what happened instead was homes actually became less affordable.  Same thing happened when restrictions on student loans were lessened.

    •  The real problem with any of discussion (1+ / 0-)
      Recommended by:

      on the mortgage deduction is nobody wants to talk about the group that benefits most from it -- banks. As you mention, they can raise the rates because they can convince homeowners they'll "make it back in tax deductions". But as I point out, that isn't always the case. So the real advantage to removing the deduction would be to remove a huge cash cow for the banking industry. Of course there's another way to do that -- regulation. Prevent the banks from jacking up the mortgage rates to artificially milk profits from government on the backs of middle class homeowners.

      To me progress is not so much a goal as it is a process and I believe it will not follow a straight course. Remember, the drops of water that form the river may not take the shortest path but they will still reach the ocean.

      by ontheleftcoast on Thu Nov 15, 2012 at 12:16:58 PM PST

      [ Parent ]

    •  Why do we give bankers the right to (3+ / 0-)

      skim money off of the top of the transaction between a student and an educational institution?

      In some countries, people are accepted and get to go to school without having to put their future into hock.

      As for the mortgage deduction, the housing market which is still shaky is probably not going to get stronger if they remove it.  People who can't afford to lose it are going to be screwed.

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