Posted on 10/12/2005 3:14:09 PM PDT by My Favorite Headache
I had long suspected such a condition...
A mortgage cap at say, 400m would send us into a protracted recession overnight.
The GOP has morphed into democrats. This election "will" shift power. Thanks, George, for the fine work. Nice job on the SCOTUS, Bub!
Does it have power steering?
"Those most impacted will be yuppies attempting to move out of apartments, where they held zero equity, into upscale homes."
Wrongo! What if you buy a second home with 20% down that costs $500M? You will se a downturn, my friend.
Shouldn't Wexler be proposing this cap, and the GOP calling it socialism???? ............................Alice through the looking glass........
That doesn't agree with many of the studies that generated the NRST effort. Imputed income for living in your house becomes a tax on "imputed consumption" of the rental service you provide to yourself. Living on your own property is depriving the government of tax revenues it could collect if you were renting it to someone else. NRST contains a fictitious source of revenue based on the government paying NRST. This is fictitious because the government's source of revenue IS NRST. Taxing a homeowner is not a fictitious source. It is called property tax when the state and local government does it. It will be a tax on the consumption of fair market rental of your own property by the feds. Hopefully this stupid concept never sees the light of day.
There may be a shrinking bubble in our future. No wonder so many have their knickers in a bunch.
Well of course it does! He does nothing right. If you don't believe me, just read the thread titles.
Get a grip! You can't find a lost cause in the N.E. that isn't 500k. I don't care what my deduction is... I don't buy diddly squat unless I can
A.) Afford the Mortgage without PMI
B.) Can live with the stupidity of the tax paying public's
voting process.. It's for the Schools and seniors
afterall! The property taxes go up with the idiocy of
the population, both of which are increasing!
C.) Still have a good life along with paying the mortgage
i.e. I live within my means!
D.) Be saving a bunch of cash, IRA's, Mutuals etc. so if
the first three predicates should blow for some unholy
reason, we can still survive!
HOW TOUGH IS THAT?
It's damned tough, but I am not into INSTANT
GRATIFICATION!!
P.S. It's worked darn well so far!
Re imputed consumption: Hmmmm... I see your point. Not a good way to implement a consumption system. You pay when you buy the place, and you pay to keep it.
Not really, a full interest rate deduction for a mortgage of $300,000 implies a $360,000 purchase price of the house, 25% higher than the LV average. Further i think the number would settle around a $350,000 mortgage which supports a house purchase value of $420,000. I don't think buyers in housing ranges above that would move in under a bridge because of the excess interest on a house over $420,000. Note, many of those homeowners would more than make up for it by the paralle proposal of this commission to eliminate all taxes on investments.
I totally agree that the bankruptcy laws had to be changed. We had contractors bilking people out of money, claim bankruptcy, and be back at work shortly thereafter. I agree with your other statements though.
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