Home mortgage interest deduction - Is it in DANGER?

Please retweet this blogpost if you find it helpful in learning about government mortgage homeownership and bank loan modifications

Okay I admit it, I cruise through talk radio stations (minus sports selections) while driving. Today, I had one hour in the car and Rush Limbaugh caught my attention (for at least 15 minutes) with his prediction that the home mortgage interest deduction is in danger of being eliminated by this administration. Hearing this and knowing how my business friends think, well - if I was a dog my ears would have been standing upright with my head cocked to one side!

He gave a synopsis that made sense. According to Rush the news today of how much our country is SPENDING, in giving tax deductions, is a signal that the administration would like to eliminate the POPULAR home mortgage interest deduction from the tax code. I immediately came home and googled my request and VOILA' , I see that there is merit to this prediction.

I have been wondering how long it would be before the tax code was overhauled to effectively raise taxes and now I know... it's just a matter of time before the interest deduction slips away into the night along with other beneficial motives to spend money in directed areas such as eduation. Here are some articles that might give you a bit more information about the changes coming down the pike and not just about the home interest deductions! These articles are about the changes coming in 2011

THE GREAT TAX DEBATE

Home Mortgage Interest Deduction: ezine article

RushLimbaugh.com (subscription)

Stack of Stuff Quick Hits Page

RushLimbaugh.com (subscription) - ‎6 hours ago‎

Get ready, 'cause they're gonna eliminate the mortgage interest deduction

Big tax changes in the works Student loan interest may affect thousands of families. Charitable deductions from IRA's. Many of the tax changes are listed here.

FANNIE AND FREDDIE: Future uncertain

THE HILL: Tax Cuts Mortgage

and there is more

Get Rid of Tax Breaks for Homeowners? No Way!

Video: News Update: Geithner: Housing system needs government support

SmarTrend News

Wonkbook: Geithner gives Fannie and Freddie clues; major health care regs ...Washington Post (blog)

Fannie Mae, Freddie Mac and Missing Real Estate Agents Housing Watch

Wall Street Journal

all 1,308 news articles »

Experts: US can no longer afford housing tax breaks

SO WHAT DO YOU THINK????? With talk of bailing out those with underwater mortages, tax hikes coming and the huge deficit - what are your plans? Which way should the country go? Do we still want to encourage home ownership?

Okay you don't believe me then you GOOGLE obama and raise taxes. In 2007 there is news article on raising social security caps (tax hike) and a couple of more links.

Charlie Gibson didnt' even agree with raising capital gains. Barack thinks thats FAIR. PEOPLE if you have any need to sell a house or take retirement etc. you will be taxed on capital gains. It will KILL investments which affects the economy. It could cause a recession to go into depression. BUT its "FAIR".

Don't forget when those tax reductions from Bush expire then that is a TAX HIKE. Don't look at what you got look at tax tables from years so that you have accurate view.

I go back to my original early posts. People need to be less selfish and think of the BIG PICTURE!

Here are couple of links to various tax increase in the news
http://www.usatoday.com/news/politics/election2008/2007-11-11-obama-social-security_N.htm

http://newsbusters.org/blogs/jeff-poor/2008/01/09/under-pressure-cnn-obama-admits-wanting-raise-taxes

Can you afford 50% tax?

Hey I'm still new at blogging so scroll to bottom and click ontaxman to listen to song while reading. :)

Well lets see; Obama says he will not increase taxes on families under 250,000, but some of his proponents have said it is 227,000 . Okay so which is it?

This week he wants to cut taxes TEMPORARILY, for Small Biz. Just a 5 months ago, he wanted to raise taxes up to 50.3% on businesses that are sole proprietorship. Of course this week he wants to be like Bill Clinton. One can only hope.

I'm kind of confused on where he stands but mostly it will be a 40% tax rate for sure. I guess in his mind that is a CUT because although it is higher than it is now, it is less than what he originally wanted? who know?

He further confuses me by saying this on his website
"Families making more than $250,000 will pay either the same or lower tax rates than they paid in the 1990s. Obama will ask the wealthiest 2% of families to give back a portion of the taxes they have received over the past eight years to ensure we are restoring fairness and returning to fiscal responsibility. But no family will pay higher tax rates than they would have paid in the 1990s."
One can only hope because in the 90's I was so broke and actually only paid 10%. 4 kids etc well this would be great..... I'll work my butt off make a million and only get taxed at my 90's rate? And since when did I receive taxes?????? his plan doesn't sound "fair" to me.

One note here: Our biz is sole proprietorship and makes far less than 250,000 (but we are growing) and have been working hard so that we can be successful... when we do, we have tons of debt to repay. That means, not only will we be paying interest, BUT we will be taxed on the debt incurred earlier.

and if you die its even more expensive ...... Here are some highlights.

• Restore 36 and 39.6 percent income tax rates.
• Restore personal exemption and Pease phaseouts for households making more then $250,000 and increase the threshold.
• Make permanent the estate tax with $3.5 million exemption ( that won't last) at 45 percent rate.
• Impose additional tax of 2-4 percent on families making $250,000 for social security/payroll.

He also has a couple good thing: invest in company up to 50K results in 20% tax credit. Right now we have that in the form of depreciating assets. I'll let the number crunchers figure it out but I always thought depreciating a laptop over years and years was stupid!

Of course coming up with 50K (like is that his fav number?)for investment can be difficult without credit. He wants to make sure that all have access to private health insurance regardless of preexisting conditions= good idea.

to recap:
40% for us work at homers and then another 2-4% for soc. sec .Further many dem's want a 50.3% tax rate heck that so only another 10% and heck if people vote in both democratic congress and democratic president - they just might get their way!

I want to mention here that in most families I know of sole proprietors, BOTH PEOPLE are working and sometimes the kids too are chipping in. Most are working long long hours. And could be making more working separately at jobs with benefits matching 401 contributions, partial health insurance payments and best of all paid days off .


Be careful what you wish for when you wish for change - I think these are some changes that will kill the economy. What do you think?


WANT TO SEE Some of the Changes?

One thing straight from Obama's site.
Eliminate capital gains taxes for small businesses, cut corporate taxes for firms that invest and create jobs in the United States, and provide tax credits to reduce the cost of health care and to reward investments in innovation. UH DUH small biz does NOT pay capital gains now

Now if you want to judge for yourself just click the title and it will take you to an article that outlines both tax plans and what they mean..

Resources
http://www.biztimes.com/news/2008/10/3/which-one-has-the-best-economic-plan
http://taxprof.typepad.com/taxprof_blog/2008/10/marginal-tax-ra.html