The Debt Commission has suggested to Congress that they eliminate the mortgage interest deduction. This is a bad idea on several fronts. Originally enacted to encourage home ownership - it has done that.
Now, homeowners depend on this tax break. True, it only applies to people who itemize their expenses on Schedule A.
The argument could be made that this is unfair because it doesn't apply to all Americans. The short answer is that it applies to anyone who wants to buy a home and use the Schedule A. It's free choice beyond that.
The argument could be made that not everyone will take advantage of the program. That's been true. So?
The disruption to home sales is certainly worth considering.
However, the most poignant argument for keeping the deduction in tact - or even raising it - is that Congress doesn't need the money that would be saved by substantially increasing taxes on homeowners through its discontinuation.
There is a really faulty logic going around in this country that (1) Congress is somehow owed our money to spend and (2) if we keep more of what we produce in income that we are somehow stealing from or denying Congress its due.
News flash: Congress gets to spend up to the amount of revenue the US Treasury receives - no more. That means no more deficit spending, no more credit cards, no more lines of credit, no more China bailouts, no more slight-of-hand by the Fed.
People, we have been taken advantage of way too long. It's not their money. Even if it was, they have shown how wasteful and lousy they are at using it wisely.
No more earmarks, no special projects, no pork, no salary increases (maybe forever), no new hiring, no new construction on offices, no new leases (only renewals until most are phased out), no Congressional pensions, no unncessary travel - just stop.
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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com, or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. Listen to my free podcast messages at Steve Hoffacker's Happenings.
Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.
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