I know, California real estate is unreal (literally IMO and is not
stable at current levels.) Thats one reason I left the state, having
been born, raised, educated and careered there. Housing prices are
just in fairyland compared to many other "nice" areas. And with
broadband internet being most everywhere (and soon to be wireless, and
literally EVERYWHERE, location is less and less important IMO,
particularly if you can make a living not tied physically to a large
hub business center.)

Compare a $500,000 or million dollar home in SF, San Diego or Sac to
one in FF. Its a joke.

But the mortgage deduction still applies to the 350k bungalow. The
proposals are for it to be partially taken away for the kind of basic
$million middle class home close to it.

And long run, thats a good thing, it will help bring housing and
affordability back into synch. 15% affordibility rates are crazy and

--- In FairfieldLife@yahoogroups.com, "Kenny H" <[EMAIL PROTECTED]> wrote:
> Maybe to most of what you have written
> However, I don't consider $350,000+ for an 800-1000 sq. foot 2 br/1
> bath bungalow  (here in Sacramento) in a lousy neighborhood
> affordable. Go a few blocks over and the same houses are already at
> half a million. Go a bit further south towards the Bay Area or east
> towards Tahoe and you start getting to the $500,000+ range for a
> small-normal size home, not the estate one would have imagined for
> this kind of money.  
>  Do you know that the cost of --- In FairfieldLife@yahoogroups.com,
> akasha_108 <[EMAIL PROTECTED]> wrote:
> >
> > "Kenny H" <[EMAIL PROTECTED]> wrote:
> > >
> > > *also trying to rewrite the tax code and screw people out of their
> > > mortgage deduction
> > 
> > And who is getting screwed out of thier mortgage deduction? Under the
> > proposal, the average home owner will maintian their full
> > deductiblity. And those who are unable to deduct it now, because they
> >  dont save enough by itemizing will be able to deduct it. 
> > 
> > Who will lose part of their deduction? The upper third or so on the
> > wealth scale. You seem overly concerned for these poor souls. First,
> > they will retain dudutability up to about the average price home
> > regionally. Thus in California, those with a million dollar home,
> > would, under the proposal, be only be able deduct the mortgage
> > interest equivalent to about a $400-500,000 home. And yet, in balance,
> > a lot of these taax payers are not currently able to deduct for such,
> > because at their incomes the Alternative Minimum Tax (AMT) kicks in.
> > But under  the proposal, AMT will be killed, thus the upper third or
> > tax payers trade part of their mortgage deduction for elimination of
> > the onerous AMT. 
> > 
> > So don't cry too hard for these upper 1/3 of taxpayers who will be
> > affected. (Which seems odd for you -- to cry for such (mostly
> > Republicans), but I guess its just compassion bubbling out for all of
> > God's creatures.) Their taxes  will be pretty much uneffected as the
> > AMT "gains" will balance out the partial mortgage deducability loss. 
> > 
> > And the lower 2/3s of tax payers will be generally uneffected -- or
> > will actually gain -- by being able to deduct mortgage interest when
> > they can't now. 
> > 
> > And the overall effect will be to make housing more affordable. A good
> > thing, yes?
> > 
> > What is interesting is your implication that mortgage interest
> > deductions is an entitlement. It is a poor policy economically, having
> > been a huge bonanza of a tax shelter for the rich and has contributed
> > to current housing being out of reach for 85% of potential buyers.
> > 
> > An effect will be that less money will be sunk into fancy show-off
> > houses and more into capital investments which will raise productivity
> > and wage rates for all. A good thing, yes?
> >

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