Some might claim that concern over the $8,000 housing tax credit is to blame. Well even if so, what exactly does that say about the recovery when government has to give away money to home buyers?Haven't we been doing this for decades via the home mortgage interest subsidy? Paying people in California, New Jersey and Connecticut tens of billions of dollars each year in order to buy grossly overpriced houses?
Thursday, November 19, 2009
Welfare for stupid people to go buy houses
Regarding last months "surprising" drop in housing starts, Mish asks:
Subscribe to:
Post Comments (Atom)
8 comments:
Get used to it, this will all be on roids next year. And yes, there is nothing we can do.
It's hard for me to see the gov't take away the tax credits next year if the Federal Reserve is going to stop buying mortgage-backed securities in March.
Don't forget to add Maryland, Virginia and DC to the list. There are more $1 million+ houses in the DC metro area than anywhere else in the country.
The mortgage interest deduction limit is capped at $1 million of mortgage debt, but includes debt for any secondary residences. At the very least, the secondary residence interest deduction should be rescinded.
To be fair, the subsidy also benefits McMansion owners in flyover. Those of us in regular middle-class houses and those who rent foot the bill.
I get a benefit from the mortgage interest deduction on my measly 188k loan on a 1400 sq ft house. It's not just McMansion owners that benefit.
I don't care one way or the other, since I haven't paid my taxes in years! :-)
The mortgage interest deduction is simply a tax transfer from the IRS to the states. Whatever is saved on our federal income taxes goes right out the door for the property taxes.
I want a freakin' subsidy, because I own my house free and clear. It's not me putting stress on the banks and all these Fannies.
"Oh, you can deduct your property taxes!" Not without itemizing, which I can't come close to doing without mortgage interest to get me up to the cutoff.
Post a Comment