Mortgage Interest Tax Deduction – Goodbye

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I am expecting that one of the major tax breaks in the nation will be hit by our elected representatives once they get back to running the Country (After the Fall elections).

Our dangerous levels of Public Debt are going to have to be dealt with and The Mortgage Interest Tax Deduction is an obvious and inevitable target.

Even as I type this I can hear the screams of “No Way” they’d never dare touch it.

Having lived through the British “phase out” of mortgage tax relief, and observed it’s results, I am convinced that this unfair tax break will soon join the Dodo, and our society will be the better for it’s going; Indeed, the process has already started, as limits on the total dollar amounts, and number of properties eligible have already been implemented over the past few years. Not all at one go, but little by little, so that in a few years it will, just like the smile on the face of the “Cheshire Cat,”  have totally faded away.

What we currently tell our taxpayers is that if they agree to take on one particular type of debt ( a mortgage) we will lower their taxes. If not we will have to increase their income taxes to make up for what we are losing to their more affluent fellow citizens i.e. Mortgage holders.

Is it good to have a high level of home ownership YES. Should it be done by this type of Social Engineering (Socialism) NO.

Could it be posible that one or more of our currently troubled States might be the 1st to take this path?? Perhaps the one that put in that other masterpiece of tax malpractice, Prop 13.

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