Tax reform must protect homeownership (CONgress wants to take home mtg interest deduction away)

[CousinIT]

The 115th Congress is gearing up for an intense legislative session, and tax reform is set to play a starring role.

. . .

For the roughly 75 million home-owning families across the country, the stakes couldn’t be higher.

Important tax incentives for homeownership and real estate investment like the mortgage interest deduction, state and local property tax deduction, and 1031 like-kind exchange are critical. They’re key to protecting home values, supporting investment and helping new buyers enter the market.

“American homeowners already pay between 80 and 90 percent of all federal income taxes. Without the MID, that figure could rise to 95 percent.”

It’s particularly troubling considering the fact that more than half of families who claim the MID earn less than $100,000 per year.

The state and local property tax deduction is essential to homeowners as well. Current homeowners know that paying property taxes is a part of owning a home, but they also know those payments to state and local governments can be deducted from their federal income tax.

Without that deduction, homeowners would get taxed on the income used to pay their property taxes. This is a form of “double taxation” that hits home for lower and middle-income households.

http://homeownershipmatters.realtor/issues/tax-reform-must-protect-homeownership/

[meadowlark5]

1. They've been wanting to do that for years

They'll try and spin it that their flat tax will have it all even out in the end. But it won't.

[CousinIT]

4. They tried that shit in some states. EVERYONE paid higher taxes

w/ their asinine 'flat tax' scheme. EXCEPT the millionaires of course.

[Else You Are Mad]

6. Tax reform...

Is just politician speak for tax cuts for the millionaires and tax increases for the poor and middle class via higher taxes and higher government 'fees' (i.e. taxes by another name).

[meadowlark5]

8. Of course

Nothing that will come out of tax reform will benefit regular people. Someone is going to have to fund the govt and the rich don't want to. They already provide soooo much to the world with all of their jobs and products We actually owe them for their great contributions

[CousinIT]

10. Regular people aren't even on their radar. Discussion on Marketplace/NPR about 20% tariff...

...focused on how BUSINESSES would handle that. Not ONE word about how CONSUMERS are going to get hit by it because businesses will just jack up their prices to cover it. Giving them tax cuts to help with the extra 20% tax/tariff will result in them just pocketing that money and raising their prices 20% anyway. Tomatoes, socks, any produce from anywhere, much of our food, all of our clothing, computers, cellphones, cars, EVERYTHING IS IMPORTED. THIS as a way to somehow create more jobs here is punitive, ham-fisted, ill though out and frankly ignorant. Of course what else would we expect from a bunch of psychopaths?

[Bengus81]

16. When you remove IRS tax brackets.........

Those at the top ALWAYS win and pay less just like they did when Saint Ronnie pulled that stunt. Those in the middle class get a tax INCREASE because you jump to the next bracket like what happened to me back in 82/83 when Reagan did his "tax reform".

I'd have to look again but I think Trump wants to lose the 15% bracket and make a 12% bracket. If you make too much to qualify for the 12% then your going to have your ass handed to you when you JUMP to the 22% or 25% bracket.

[Tikki]

2. Knew it, knew it, knew it, knew it...should of bet money on this....

because I knew they would try this.

Were they talking about this, exactly this, during the campaign....doubt it!

Stupid repug voters.

Tikki

[Yavin4]

3. A lot of people vote Republican because they thought that the Repubs would kick the

moochers off welfare and food stamps. They didn't expect them to come after their middle class tax cuts.

[CousinIT]

7. Middle class will also pay a higher rate in general + 20% more for imported stuff (ie: everything)

Someone has to pay for that $7 Trillion in tax cuts SHitler intends to give to corprats. That will be the middle class and poor.

ALL THAT, and taking away healthcare from everyone too (except millionaires and billionaires) http://www.democraticunderground.com/?com=view_post&forum=1002&pid=8649865

We're sitting ducks / SCREWED. May as well stick a fork in anyone who isn't a billionaire right now.

[Else You Are Mad]

5. I am certain...

That if the GOP passes this, there will be a lot more middle and upper middle class moderate Republicans voting for Dems in 2018 after they realize their tax bills will go up.

Or, they will just blame Obama.

[Tikki]

9. king sized a**h**e reagan took away tax write offs of interest.....

and many American voters bent over and gladly took it from him.

... Oct. 22, 1986 President Reagan signed a bill that eliminated interest deductions for consumer loans, which included cars, credit cards, etc.


Tikki

[Else You Are Mad]

11. Yes...

But, he didn't go as far as to eliminate the mortgage deduction. Also, those deductions mainly hurt the poorer and lower middle classes more so than the upper middle class that paid cash for cars and other things.

Also, back in the 80s, mortgage interest rates were in the double digits, so that those that could afford to purchase homes with cash were more likely to do so than they have been in the last decade. Recently, rates have been low as 3% for mortgage interest, so more upper middle class families have been more likely to take mortgages out to pay for their mcmansions because it was practically free money for a home.

[LeftInTX]

12. In other words, they want to increase taxes

[CousinIT]

13. For the majority of the US - YES. BINGO.

They only want to "cut taxes" for the goddamned billionaires and corprats. The rest of us will likely see HUGE increases.

[Bengus81]

15. Then you'll get those who say I don't care,I rent....

LOL...as if your kindly landlord is going to lose a HUGE write off and not raise your rent. But sheep think that way............

[Bengus81]

14. Go for it Trump. Wait until the Natl assoc of Realtors speaks out and.........

the National association of home builders. But hey...go ahead and do away with that deduction on top of ACA and a gutted Medicare and watch for riots in the streets.

[CousinIT]

17. The link is from one of the Ntl Assoc of Realtors Websites...

IOW they are speaking out! I don't think they like this possibility AT ALL.

If those bastards do this they're going to BADLY hurt a LOT of people - not to mention repeal of ACA, gutting/privatization of Medicare and Medicaid, and that 20% tariff and increased tax rates we'll all be paying. They are LITERALLY out to DESTROY the middle class - hollowing out the economic viability of 90% of the country. It's pretty reckless and stupid.

[OldHippieChick]

18. Not to mention builders, contractors,

carpenters, HVAC installers, plumbers, roofers, etc. This would and could affect millions. These idiots are not even thinking about the middle class. All millionaires all the time.