people borrow more when buying a house

annchovie01 | Feb 28, 2013 04:32 PM ET jswanstr, that`s at todays interest rates. Many of us who have played by the rules and paid our mortgages even as our homes have gone underwater have been unable to refinance so we are are still at >5% interest rates. We`re the ones bearing the brunt of this disaster while the thieves who took out loans they couldn`t afford are given security blankets and popsickles. A $1000 is 2 weeks takehome pay for someone making $40K/yr. Maybe it`s nothing to you. But for a substantial portion of America it`s not weekend "pizza money" as Obama called his tax increase a few years back. We don`t get vacations once/month and 99 days of golf in 4 years like your lord and saviour Obama. We work for a living out here. So maybe you and your commie corporate shills should take your%2

ckoffend | Feb 28, 2013 04:32 PM ET The whole notion that people borrow more when buying a house so they can get a bigger mortgage interest deduction is: A: a stupid belief as it does not make financial sense or B: only done by stupid people! Let`s say you are one of those stupid people. You can afford a $200,000 mortgage, but instead you get a $300,000 mortgage. Your rate is 4% (simple number). $200K = $8,000 interest. Your $300K = $12,000 interst (1st year, max). Assuming you get to deduct at the 39% rate, you are spending $4,000 extra in interest alone to reduce your taxes by $1,560. If you think that is smart and a good return, you really don`t understand finance and probably shouldn`t buy a house in the first place!

annchovie01 | Feb 28, 2013 04:35 PM ET ProfWatson, Canadians also buy health insurance in the US so they can come across the border and get the care they need. If Canadians are happy it`s because they have the US for a next door neighbor to take care of them.

Takeurhandsoutmypocket | Feb 28, 2013 04:36 PM ET If they get rid of the deduction....my family and I will prob just walk away from our house. Go ahead and attack the middle class........but remember....payback is a B.

annchovie01 | Feb 28, 2013 04:41 PM ET takeurhand, I agree. Any more new taxes and I stop paying my mortgage. it`s just not worth it anymore. Moving to Argentina is looking very good right now. Land is cheap and I could buy a farm/vineyard and be very happy. Socialism is Socialism no matter what flag it flies under. If the US becomes more Socialist than it already is there is no reason to live here any longer. Endless flocks of dove to hunt, great fishing and trophy hunting. Argentina sounds great right about now.

griffbos | Feb 28, 2013 04:49 PM ET Okay folks lets be honest not every home owner gets this deduction you only get it if you itemize instead of taking the standard deduction. thus you need to be able to itemize more than the standard deduction gets you, I say it is time to do away with itemizing and put everyone on the same playing field....

CommonSenPlease | Feb 28, 2013 04:58 PM ET Taking away int deduction is removing the most common tax benefit for the common people. So, according to the story, $83 biilion will add to the tax revenue, but you can bet more than $83 biilion are lost indirectly. Why? The housing industry will suffer b/cos less home purchases lead to no big ticket items purchases like furniture, building materials, TV, home appliances, etc. Billions are lost in sales tax, manufacturing jobs, construction jobs, retail jobs, and related jobs. Only the super rich will have great tax benefits - low tax rate on capital gain tax like stock option, stock, divident. That will encourage even more shifting of their income to off-shore accts, investment in foreign operations (create jobs outside US) and hide assets overseas to pay even less tax. This attitude fee

CommonSenPlease | Feb 28, 2013 04:59 PM ET This attitude feeds on itself. Well, it looks like what you don`t see cannot hurt you. Go ahead, eliminate interest deduction.

GenerationX | Feb 28, 2013 05:00 PM ET Super Rich Hide $21 Trillion Offshore, Study Says According to an early report on the study in The Guardian, Henry`s research shows that at least £13tn [$21 trillion], perhaps up to £20tn [$31 trillion], has leaked out of scores of countries into secretive jurisdictions such as Switzerland and the Cayman Islands with the help of private banks, which vie to attract the assets of so-called high net-worth individuals. Their wealth is, as Henry puts it, €œprotected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy€. forbes/sites/frederickallen/2012/07/23/super-rich-hide-21-trillion-offshore-study-says/

GenerationX | Feb 28, 2013 05:03 PM ET The wealthy elites want us all to pay the price for what they did to cause the 2008 meltdown with their casino gambling and the resulting $16 trillion bailout (interest for 4 years included). They should have been held accountable and not been bailed out. Then our national debt would be a mere $1 trillion and we wouldn`t be having these discussions. Where is our Ferdinand Pecora?






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people borrow more when buying a house

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