Fiscal Cliff: Mortgage Interest Deduction, Once a Sacred Cow, Is Under Scrutiny
BY PETER EAVIS
A tax break that has long been untouchable could soon be in for some serious scrutiny.
Many home buyers deduct their mortgage interest when assessing their tax bill, a perk that has helped bolster the income of millions of families — and the broader housing market.
But as President Obama and Congress try to hash out a deal to reduce the budget deficit, the mortgage interest deduction will likely be part of the discussion.
Limits on a broad array of deductions could emerge in any budget deal. It is likely that any caps would be structured to aim at high-income households, and would diminish or end the mortgage tax break for many of those taxpayers.
Good. This deduction is nothing more than a vehicle for the banks to steal tax dollars.
Also, anyone who thinks it is smart to give interest to the bank and only receive what amounts to a ratable deduction from their tax payment is an idiot. You are better off not carrying a mortgage if you can afford not to.
Of course I understand that this means a one time downward shift in home values, including the one I own. I don’t care, because that means my liquid assets will go further towards buying more real estate, with minimal debt assumption. Yeah, the Realtors will have to take 6% of less, but who cares.