vertise, you don't seem to understand how the economy is set up. A person who is making 250k and has no debt will be RAPED by the tax man. The entire govt. is set up upon debt.
This is a common misunderstanding, folks think they get a tax break by being in debt, consciously or unconsciously, our tax code is set up to favor people that go in debt, but only to buy a house, homeownership the American Dream. It used to be that you could get a tax break for all debts that you paid interest on, didn't matter what it was for. In the late 70's or early 80's, can't remember for sure, they made some changes in the tax code that affected this. Seems everyone decided credit card debt was bad for you so they eliminated that deduction. And the refie market was born. All you had to do was go into your financial institution and borrow enough money to pay off you credit card debt, do a little home improving so you could say it was for your house, and bingo gingo, even though you Mortgage percent went up a little, you were saving all of this money, creating all of this positve cash flow. I assume you have listened to an ad or two, saved this lady $400.00 a month,etc. Well BULLSHIT, what they did was take your short term debt (credit cards) on stretch them out for the next thirty years, don't worry you can always get a refie and since the value of the property will go up, sell it and buy another.
How do you get the population to agree to have the 'government' bail out bad business decisions, tell everyone folks are losing their houses, we simply can't have that.
There are several things wrong with this idea that you get a tax break for paying interest on a house. When I was doing income taxes, I pointed this out to several folks. One of my relatives was trying to tell me it was good to have this Mortgage Interest Deduction, they were getting a refund. I explained that he could give me the $7000.00 he paid in interest and I would give him back $2000.00, no problem, it is not a credit it is literally and figuratively a deduction from income not a tax credit, subject to your AGI deduction, before you get the deduction. If you had paid cash instead you might owe a few dollas of taxes but you would have the $7000.00 you paid in interest in your pocket. See what I mean.
The next thing that is wrong with it is who pays for the deduction? All of the non-home owners.
If you don't pay the interest, you could pay the taxes, we are getting raped to keep bad credit flowing, and the tax breaks as you talk about them is big part of how they folks that have the money are doing it to us. The stockbroker gets paid whether you are buying or selling.
And you have fallen for it hook, line and sinker.
If you are so concerned about debt. then why would you vote for a person (Obama) who will increase the debt.? Curious. or perhaps you haven't thought it through.
out.
