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Writing off mortgage interest


whomper
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I have no link but my neighbor was telling me yesterday that there was talk of dissallowing people to write off their mortgage interest . Has anyone heard of this ? That would be absolutely brutal. If it is the case I am not sure if Obama or Bush initiated it but ouch that would suck.

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I hadn't heard that but found this with a quick google search.

 

 

 

In order to pay for health care reform, President Barack Obama is proposing to take the axe--or at least the scalpel--to a longtime sacred cow: the mortgage interest deduction. The plan, which was included as part of the president's budget proposal for 2010--unveiled Thursday---would reduce the value of the mortgage interest

 

and other deductions for the nation's highest earners. Taken together, the increases are expected to bring in $318 billion over 10 years.

 

Here's how The Wall Street Journal described the proposal:

 

 

 

Households paying income taxes at the 33% and 35% rates can currently claim deductions at those rates. Under the Obama proposal, they could deduct only 28% of the value of those payments…

 

 

 

 

For the 2009 tax year, the 33% tax bracket starts with couples with taxable earnings of $208,850, when adjusted for personal exemptions and various deductible expenses. A taxpayer in the top bracket paying $1,000 of mortgage interest, for example, would see a tax break worth $350 reduced to $280.

 

 

The proposal sets off what is sure to be a heated battle with housing-related industries. The National Association of Home Builders, for example, has already released a statement attacking the plan:

 

"With the housing market still reeling from its worst downturn since the Great Depression, this is not the time to talk about raising taxes on home buyers and home owners," Joe Robson, chairman of the National Association of Home Builders, said in a press release. "This proposal will increase the cost of housing for many middle-class families, particularly in high-cost areas such as California and the Northeast, which will only further undercut the housing market, exert more downward pressure on home values and work against the President's efforts to stabilize housing and turn this economy around."

Looks like it is proposed by Obama. It won't completely take away the deduction...It looks like it will only limit it to 28% for those in the highest tax brackets.

Edited by BYoder
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Obama should just cut out the middle man and start hiring rich people to work directly for the poor.

 

I hope I don't get one that smells like feet. All the poor lazy people in the world stink. Some of cheese and some of feet. If I can choose, I'll take the cheese stench.

Edited by TimC
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