MasterP said:
http://www.sfgate.com/cgi-bin/article.cgi?…/BU7O166J6Q.DTL
So we all know the rich buy property, it’s a solid investment and usually makes for good supplemental income through rentals and the like. We also know the rich are the only ones not really having issues actually paying their bills when it comes to mortgage payments.
Now why would Obama go and remove the only monetary insentive to actually take out a loan on a house? The existing system phased the benefit out for the “rich” to make the benefit gradually less than those the “poor” and “middle class” get but now the “rich” get absolutely nothing.
If the rich quit buying property this whole mortgage crisis thing isn’t going to get any better. I would think Obama would be doing everything in his power to encourage purchase of distressed and forclosed property, not eliminating the tax incentive for the most able to do so.
The article speaks for itself. Just depends what you take from it. You got potential Housing Catastrophe part DUR. I got more money for health care, renewable energy, and improvement in education:
“For the people in that income strata … the dollar magnitude is not that great,” said Richard Pon, senior tax manager at Lautze & Lautze in San Francisco. “But you will have a lot of irate taxpayers complaining that their deductions are capped.”
Christopher Thornberg, principal at Los Angeles research firm Beacon Economics, said the reduced deductions could slightly weigh down home prices, by 2 to 3 percent, but only on higher-priced properties that have been less affected by the housing downturn.
Under Obama’s proposal, the additional revenue from this and other increased taxes on the wealthy would be used to expand health care coverage, invest in renewable energy and improve education.
Either way we will have to wait and see what happens.