Came across this doozy as I made my rounds last tonight:
The popular tax break for mortgage interest, once considered untouchable, is falling under the scrutiny of policymakers and economic experts seeking ways to close huge deficits.
Although Congress last year rejected the White House’s proposed cut to the amount wealthier taxpayers can deduct for home mortgage interest payments, the administration included it again in its 2010 budget — saying it could save $208 billion over the next decade.
And now that sentiment has turned against all the federal red ink — and cost-cutting is in vogue — Democrats on President Barack Obama’s financial commission are considering the wisdom of permanent tax breaks such as the mortgage deduction and corporate deferral. Calling them “tax entitlements,” senior Democratic lawmakers have argued they should be on the table for reform just like traditional entitlement programs Medicare, Social Security and Medicaid.
The new spotlight on the mortgage deduction and other tax expenditures comes as the Obama administration and Congress consider ways to reduce deficits the Congressional Budget Office (CBO) expects will average nearly $1 trillion over the next decade.
If this goes through you can basically kiss housing goodbye. There is no demand for housing as it is. The mortgage write-off was one of housing's strongest selling points.
I am happy to see Obama looking at various ways to reduce the budget but OUCH!....This one is gonna hurt if it gets passed.
This type of taxation pain is unavoidable as we sober up after our spending binge and realize that we now have to pay the money back.
Get used to this type of stuff folks. Taxation will be coming at you in waves like you have never seen before moving forward. The VATs (value added taxes) will be next. These are the type of consequences that you suffer when the you spend so irresponsibly.
Aren't you just thrilled now that you bailed out Wall St.? The pigmen were saved on your dime and they left you with the trillion dollar tab. This near meltdown has also left us with the worst economy in 80 years.
As a result, millions of Americans are suffering as unemployment and foreclosures soar.
B-b-but Wall St. suffered too didn't they?
Yeah riiiiight...With the ability to borrow at practically nothing thanks to a 0 Fed funds rate, Wall St. proceeded to have one of its most profitable years in history. So how did Wall St. thank us for the bailout after having such a great year in 2009? They paid themselves billions in bonuses.
Ain't Capitalism grand?