I believe that the most recent figures on home ownership were about 75% of the nation's households. Thus the people who get the benefit of a mortgage deduction are most of the country, and the proportion of those who pay significant income tax who benefit from the deduction is even higher. The taxpayer is subsidizing him/her/self.
Note that those without significant deuctions that can be itemized, have the benefit of the standard deduction, at a fairly high amount. I suggest that you ask Wellstone and Dayton about carrying the torch on a bill to eliminate this deduction. I'm sure that they will devote the rest of their political careers (which would be correspondingly short) to getting such a bill passed. I'm sure that the seemingly large number of people who refinance in order to improve their property are ashamed and make voluntary contributions to the government. I'm sure that those who are morally opposed to this deduction also voluntarily give the money back to the government. Perhaps you don't see that elimination of this deduction would lead to a reduction in the income tax rate if it were to be revenue-neutral. Public policy for these many, many years has been to encourage home ownership. The Great Society of President Johnson wanted to move people out of the cities. In order to do that, they bought houses. And, of course, there is the housing boom following World War II. Why don't you look at what would help many people, reducing or eliminating the 7.5% medical expenses reduction on the federal (indirectly state) itemized deductions? Even if you make $20,000 a year, that eliminates $1,500 of potential medical deductions. Or maybe you favor a flat tax? Bruce Gaarder Highland Park Saint Paul [EMAIL PROTECTED] From: [EMAIL PROTECTED] > With regret, I think that experience over the past 30 years is that sweat > equity has been successful in very special circumstances, for a variety of > reasons. First, the housing subsidy burden on taxpayers is - overwhelmingly - > the homeowner mortgage interest deduction. This federal housing subsidy > provides the most benefits to the most well-to-do homeowners (there is an > upper limit) who have the most expensive homes (or two). This subsidy is many > many times the amount provided for all types of federal housing assistance > for low and moderate income people. (Sorry I don't have time to look up the > numbers) . Homeownership has many positive impacts upon the community, but > owners build equity and get appreciation - PLUS a big subsidy from renters > and all taxpayers. _______________________________________ Minneapolis Issues Forum - A Civil City Civic Discussion - Mn E-Democracy Post messages to: [EMAIL PROTECTED] Subscribe, Unsubscribe, Digest option, and more: http://e-democracy.org/mpls
