Surprise, surprise: Mortgage Interest Deduction on the chopping block (Canada, Obama, how much)

[EdwardA]

I recall Romney getting much heat for not specifically naming which deductions he'd eliminate. Mostly because it was assumed he would propose eliminating the mortgage interest deduction.

Now it appears it's on the chopping block after all.
Mortgage Interest Deduction, Once a Sacred Cow, Is Seen as Vulnerable - NYTimes.com

One of the reasons the mortgage tax break is so vulnerable is that both Democrats and Republicans have recently favored capping deductions, including both President Obama and the recent Republican presidential nominee, Mitt Romney.
What is more, deductions could be used to grease a compromise in the budget negotiations. High earners would be hit most by deduction limits, something that might make Republicans recoil. But the party may tolerate such a policy in return for a deal that limits how much actual tax rates go up for high-income households.
Tax numbers suggest it may not be hard to structure deduction limits in a way that leaves most middle-income households untouched.

[HappyTexan]

It's the last one. Once upon a time, all interest paid on all types of loans was deductible.

It was just a matter of time. The USG is desperate for revenue.
And still no mention of an AMT patch which expired 12/31/2011.

Buckle up middle/lower class...the tax man is coming for you !

[dragontales]

won't happen. political suicide.

[HappyTexan]

Originally Posted by dragontales

won't happen. political suicide.

For who ? Obama who can't be re-elected anymore ?

[middle-aged mom]

Everything is on the chopping block.

I am probably the only broker in the U.S. who favors eliminating this deduction. Then again, I tend to want to simplify and eliminate most individual and corporate deductions.

[BigDGeek]

Originally Posted by HappyTexan

It's the last one. Once upon a time, all interest paid on all types of loans was deductible.

It was just a matter of time. The USG is desperate for revenue.
And still no mention of an AMT patch which expired 12/31/2011.

Buckle up middle/lower class...the tax man is coming for you !

More like "bend over".

[Frank DeForrest]

Funny I don't see any serious expenditures on the chopping block.

[HappyTexan]

Originally Posted by Frank DeForrest

Funny I don't see any serious expenditures on the chopping block.

And you won't because that's political suicide. "Don't cut my program" or "Terrorists will bomb the US because we are left defenseless"

[BigDGeek]

Originally Posted by Frank DeForrest

Funny I don't see any serious expenditures on the chopping block.

Of course not. Why raise taxes on the rich, those best able to afford an increase, or cut pork barrel spending, when you can just turn the screws AGAIN on the middle class?



*prints out Canada immigration forms*

[EdwardA]

Originally Posted by dragontales

won't happen. political suicide.

Nope not at all. Besides what does Obama care? He's done in '16 and the other Dems will simply blame the GOP. Besides we now know a large swath of voters are not really moved by issues anyway.