Not a snowballs chance …..
We’ll kill this subsidy to the rich when Oba mama becomes born again. Even the Dems aren’t this stupid. This handout is for the real estate industry and the rich who pay for such a large piece of the political campaigns.
Remember you have to have over 11 grand of interest on your house payment yearly to qualify for this gimmick and have a house mortgage of somewhere around $160000 at today’s interest rate.
This usually is around the price level for most starter homes in most of America and effects 20 million voters or so. So changing it is so much hot air. None of these clowns in Washington are that brave.
However, any attempt to means test the measure because the wealthy have billions in interest deductions on their mansions is doomed to failure . After all the politicians would have to take a hit in their own taxes and then try to explain to the sheep back home why they raised taxes during a depression.
Not going to happen.
A better bet is more gimmicks, handouts, credit extension games, bailouts, bitching about consumers saving too much and especially whining about rich people ripping the government off.
There’s probably a lesson there somewhere.
To my real estate friends; agents, brokers, homeowners, et al., this is a serious threat to an industry that is just now trying to get it’s feet underneath it.
The White House and Congress see the 100 billion dollars a year that goes to homeowners and want to spend it on their own projects. They have realized they are spending way to much money and the deficits are growing out of control.
How out of control? Let’s talk nearly 20 trillion dollars in debt by 2015.
Now they are not going to stop spending. Spending means power in Washington, so instead they are doubling down. Taxes are going up, tax breaks are being removed, and every possible revenue source is being examined.
This includes the Mortgage Interest Deduction for Homeowners.
We need to keep an eye on Congress and the White House. They know they are in trouble and could lose control of the process by January. If this is the case, they may push through a host of changes to our tax code in the coming months.
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. … via The Hill