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Tax Deduction Under Fire for 'McMansions' [RAT wants to end Deduction if House > 3K Sq Ft]
Washington Posy ^ | 10/24/08 | Kenneth Harney

Posted on 10/24/2008 2:20:33 PM PDT by freespirited

To add to the mortgage meltdown miseries, the credit panic, the plunging home sales and the rising foreclosures, here's a new worry: a proposed cutoff of mortgage-interest tax deductions for houses with more than 3,000 square feet.

One of Capitol Hill's most experienced and most powerful legislators is drafting a "carbon tax" bill that would do precisely that. The chairman of the House Energy and Commerce Committee, John D. Dingell (D-Mich.), expects to introduce comprehensive climate-change legislation when Congress returns next month.

Besides imposing hefty new federal taxes on gasoline, the forthcoming bill would, in Dingell's words, seek to "remove the mortgage interest deduction on McMansions -- homes over 3,000 square feet." Dingell said he recognizes that such a proposal will spark much criticism, but he also said it is essential to reducing carbon emissions by 60 percent to 80 percent by 2050.

"In order to address the issue of climate change, we must address the issue of consumption," Dingell said in talking points prepared for town-hall discussions of the legislation. "We do that by making consumption more expensive."

Houses, like autos, are contributors to greenhouse-gas emissions. This is through heating, cooling, electrical usage and building materials, plus the highways and roads needed to make far-flung subdivisions accessible to buyers. Home builders insist that they have "gone green" in recent years and that houses constructed within the past decade are the tightest, most energy-efficient in history.

Aides to Dingell said that because the legislative language on large houses and other tax proposals is still being drafted, neither they nor the congressman could elaborate on the details of the plan or why the cutoff point of 3,000 square feet was chosen.

(Excerpt) Read more at washingtonpost.com ...


TOPICS: News/Current Events
KEYWORDS: dingell; mortgagededuction
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Government deciding how big your house can be ... has a familiar ring to it.
1 posted on 10/24/2008 2:20:33 PM PDT by freespirited
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To: freespirited

Have they completely lost their minds?


2 posted on 10/24/2008 2:23:36 PM PDT by Terpin (Missing: One very clever and insightful tagline. Reward for safe return!)
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To: freespirited

Would those poor folks who were forced into subprime loans by evil bankers and whose houses exceed 3,000 feet also lose their deduction? Hmm?


3 posted on 10/24/2008 2:26:29 PM PDT by saganite (Obama (Senator Government) is a political STD)
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To: freespirited

Bit discriminatory against folks that live in cheaper areas, too.


4 posted on 10/24/2008 2:26:59 PM PDT by MeanWestTexan (A Jew voting for Obama is like a chicken voting for Col. Sanders.)
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To: freespirited

2007 article.


5 posted on 10/24/2008 2:27:02 PM PDT by sbMKE
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To: freespirited
Thanks very much for posting. John Dingleberry - Socialist Michigan

Another frikken socialist crawls out of his 'rat hole.

Democrat Crime/Collectivist/Socialist Syndicate BUMP!

Socialism is out in the open and on the march.

6 posted on 10/24/2008 2:27:04 PM PDT by PGalt
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To: freespirited

2007 article.


7 posted on 10/24/2008 2:27:10 PM PDT by sbMKE
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To: freespirited

I hope they remember some people have BIG families. Some adopt, some take in foster children, etc.


8 posted on 10/24/2008 2:27:38 PM PDT by buffyt (Who is John Galt and I really think Atlas WILL SHRUG very soon.)
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To: freespirited

This is a very old article. But I did recently hear this being a current issue in the after election session of congress. I did a search and could not find it. Perhaps a smarter Freeper will post for us.


9 posted on 10/24/2008 2:27:41 PM PDT by ncfool (Obama stands for The New United Socialist State or "TNUSSA")
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To: freespirited

And so we watch as climate change becomes a “Do whatever we want” license for Big Brother. Whoever thought that the weather could contribute to the erosion of freedom.


10 posted on 10/24/2008 2:27:47 PM PDT by RWB Patriot ("Let 'em learn the hard way, 'cause teaching them is more trouble than they're worth,")
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To: freespirited
I despise these people. I really do. Really. When will this crap stop? Talk about the golden goose.

BITS is coming. Never thought I'd see it, but I'm now sure I will.

FMCDH(BITS)

11 posted on 10/24/2008 2:27:58 PM PDT by nothingnew (I fear for my Republic due to marxist influence in our government. Open eyes/see)
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To: Terpin

Have they completely lost their minds?


They’ve completely gone full blown Communist. I think they’re getting brave because Obama is close to the Whitehouse.
They caused the financial mess to begin with now they want to dictate home size and confiscate 401k’s


12 posted on 10/24/2008 2:28:25 PM PDT by CommieCutter ("Why DON'Y you just let PEOOPLEP make up their own MINES who listen?“ (-Candor7)
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To: Terpin

That will really depress the housing market. Regardless of size as people cannot trust the deduction for any size house in the future or sell there existing house.

Larger house prices will drop to prices of smaller houses and compete for buyers against the smaller houses.


13 posted on 10/24/2008 2:28:29 PM PDT by Hang'emAll
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To: freespirited

Dumb. Stupid. Unreal.

Also, if the government can decide that it’s 3k sq ft, who’s to say later on the govt doesn’t decide to reduce that to 2k or more?

Holy crap are these mofos against any kind of private wealth or property ownership whatsoever? Seriously. What’s with these envious pieces of sh*t?


14 posted on 10/24/2008 2:29:07 PM PDT by Harry Wurzbach (Joe The Plumber & Rep. Thaddeus McCotter are my heroes.)
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To: freespirited

Home stopping at 2,990 to 2,999 sq. ft. will be great.


15 posted on 10/24/2008 2:29:20 PM PDT by wastedyears (Quiet by nature, standing tall)
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To: freespirited

Between this and the 401(k) murder-death-kill, I think that the Dems are overplaying their hands. As far as they are concerned, Obama has already been crowned and they are slobbering over all of the nifty socialist programs they get to shove down our throats. They can barely contain their communism, but I believe it will come back to hurt them.


16 posted on 10/24/2008 2:29:31 PM PDT by thecabal (I AM JOE)
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To: freespirited

So they are going to discriminate against people with large families?

I can’t fit my Catholic family in anything less, and frankly 3000sqft is not a Mansion. When all of us are home for the holidays, we walk into each other.

So the democrats are going to go after Catholics, Mormons and large families to enforce population control.

I know this little nasty tax would not apply to democrats like Charlie Rangel because he got HIS big tax break on his No-interest mortgage, which, btw, is not available to non-democrat leaders.

*tongue-in-cheek (but could make a useful, if completely inane, political jab.)


17 posted on 10/24/2008 2:29:48 PM PDT by OpusatFR (Neither Republican or Democrat. Monarchist with allegience to The Only One.)
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A 3 thousand square foot house is supposed to be a mansion now? WTH?


18 posted on 10/24/2008 2:30:05 PM PDT by Crimson Elephant
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To: freespirited
Vote Democratic... you can go into foreclosure too.

With such a law we could completely destroy the real estate market for the next 50 years. All those foreclosures will go on the market and drive down property values enough so we can bankrupt every county and city in the country. This is like a mortgage Armageddon... Go ahead and pass this... we will have a Republican majority within 2 years.

19 posted on 10/24/2008 2:30:21 PM PDT by RedEyeJack
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To: freespirited
No this is class/race war.

Blacks and Latinos in general own majority of small houses as they fall under lower income and they will get tax benefits.

Whites and Asians will receive no such credit as they own big houses thus giving more of their wealth to Obama.

Obama and Democrats have declared race war against Whites. Somebody needs to stand up against them.
Obama and democrats have declared war on Whites and Asians.

20 posted on 10/24/2008 2:31:08 PM PDT by indianyogi
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To: freespirited

Unintended Consequence: some people can afford their existing home because of the tax law as it was when they signed the mortgage. Removing some of their mortgage deduction will not only decrease the amount of money available to make the payments, it will tend to boost the tax family’s tax bracket!

Yet another reason for the Fair Tax.


21 posted on 10/24/2008 2:31:12 PM PDT by theBuckwheat
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To: freespirited

Wow! Giving total governmental power to the most extremist maggots in our society was a brilliant idea. The brilliance of the people living in this country never ceases to amaze me.


22 posted on 10/24/2008 2:31:15 PM PDT by FlingWingFlyer ("I'm just going to spread YOUR wealth around." - Barack HUSSEIN Obama a.k.a. Barry Soetoro)
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To: Terpin

Tch, you’re making the assumption that this is meant to benefit the people. This is strictly the government grabbing more power while hiding behind their endless “for the common good” smokescreens.


23 posted on 10/24/2008 2:31:29 PM PDT by RWB Patriot ("Let 'em learn the hard way, 'cause teaching them is more trouble than they're worth,")
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To: ncfool
This is a very old article. But I did recently hear this being a current issue in the after election session of congress.

I heard the same thing ... that's why I dug this out.

24 posted on 10/24/2008 2:32:07 PM PDT by freespirited ( We have met the enemy, and he is the MSM.)
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To: freespirited

Gee. I guess the upside on this is that I can use the 1040EZ form instead.


25 posted on 10/24/2008 2:32:46 PM PDT by SeanOGuano
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To: freespirited

Yeah, this would really help homeowners. Also, there’s the more practical matter of how this would even be enforced? I guess they can force lenders to identify if a home meets a certain classification when they send in the interest paid form to the IRS.

Got d@mn who are all the morons out there who want the government sodomizing them like this?

Seriously, something like this would just kill the housing market and any potential recovery, just as all of the bad mortgage paper is being worked through the market.

This election is like one big national IQ test.


26 posted on 10/24/2008 2:32:54 PM PDT by Harry Wurzbach (Joe The Plumber & Rep. Thaddeus McCotter are my heroes.)
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To: buffyt
I hope they remember some people have BIG families. Some adopt, some take in foster children, etc.

China has a solution for this problem.

27 posted on 10/24/2008 2:33:16 PM PDT by Fresh Wind (10 years on Free Republic. Yikes!)
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To: freespirited

Many years ago-—I mean like the late 1960’s-—I was traveling in Mexico and asked why it seemed there was always a hole or some other unfinished area of a building.

A local told me that an unfinished building in Mexico was assessed lower taxes.

Now we are importing Mexican tax laws into the USA!!!!

Who woulda thunk!!!!


28 posted on 10/24/2008 2:34:10 PM PDT by Presbyterian Reporter
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To: freespirited

Most congressmen have more than one house. One in the district and one in DC (even if its rented, it still poses another carbon footprint). Betcha they stop short of combining square footage to protect themselves.


29 posted on 10/24/2008 2:34:17 PM PDT by Starboard
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To: freespirited

These LibTard DhimmiRats aren’t going to be satisfied until they foment armed insurrection in the streets. That’s something they would never weather, something they could never actually survive. But, still they continue with their agenda of condemn and control.

It may well be time that the tree of liberty be refreshed...


30 posted on 10/24/2008 2:35:19 PM PDT by PubliusMM (RKBA; a matter of fact, not opinion)
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To: freespirited

I hate to use the f-word, but the only phrase that comes to mind is “f**king idiot.”

Why do I swear more when listening to liberals?


31 posted on 10/24/2008 2:35:48 PM PDT by RockinRight (Obama who?)
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To: freespirited
Hey, Dingleberry, how many square feet in Congress?

How about we eliminate your seat, and save the planet?

32 posted on 10/24/2008 2:36:01 PM PDT by traditional1 ("The American presidency is not supposed to be a journey of personal discovery")
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To: SeanOGuano
"Gee. I guess the upside on this is that I can use the 1040EZ form instead."

Is that the one that only has two lines:

1. How much income did you have this year? _____

2. Send it in. _______

33 posted on 10/24/2008 2:38:32 PM PDT by traditional1 ("The American presidency is not supposed to be a journey of personal discovery")
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To: freespirited
Well that really ought to revive the housing industry!
34 posted on 10/24/2008 2:39:15 PM PDT by Sooth2222 ("Suppose you were an idiot. And suppose you were a member of congress. But I repeat myself." M.Twain)
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To: Terpin

No. They are simply acting the way communists do. The question is whether the majority of Americans have lost their minds.


35 posted on 10/24/2008 2:40:41 PM PDT by IrishCatholic (No local communist or socialist party chapter? Join the Democrats, it's the same thing.)
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To: indianyogi
Photobucket
36 posted on 10/24/2008 2:44:22 PM PDT by ladyvet (WOLVERINES!!!!!)
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To: saganite

Schizoid...I admit most of the McMansions are awful and running a lot of nice neighborhoods but Congress should but out.


37 posted on 10/24/2008 2:48:23 PM PDT by A Strict Constructionist (Can we avoid"Tobacco Road" on the "Road to Surfdom"?)
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To: freespirited

The mortgage interest tax deduction currently is limited to interest paid on the first $1 million in acquisition debt.

To limit it still further by square footage is a Dem public relations ploy, and targets bigger families.


38 posted on 10/24/2008 2:48:52 PM PDT by BAW (Proud member of the vast right wing conspiracy.)
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To: freespirited

“Gotta keep that damn middle-class under control! Can’t let ‘em get all uppity and what-not.” /sarc


39 posted on 10/24/2008 2:49:59 PM PDT by Clock King (You either die a hero or you live long enough to see yourself become the villain.)
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To: freespirited
LOL!

The Breck Girl will have to move!

40 posted on 10/24/2008 2:57:14 PM PDT by Churchillspirit
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To: freespirited

We really need a limit of 2 terms per lifetime. these guys stay in for half a lifetime and turn despotic or queer and we have to suffer them.


41 posted on 10/24/2008 3:12:58 PM PDT by Waco ( G00d bye 0'bomber)
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To: freespirited

Al Gore is so screwed.


42 posted on 10/24/2008 3:14:50 PM PDT by informavoracious (Oust all incumbents.)
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To: freespirited

“cutoff of mortgage-interest tax deductions for houses with more than 3,000 square feet. “

Wouldn’t that mean that Gore and Edwards would loose deductions? Or are they exempt because they are part of the elite?


43 posted on 10/24/2008 3:22:19 PM PDT by JSteff ( It is ALL about SCOTUS, forget the name of the candidates and vote on that!)
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To: freespirited

Well, time to go dynamite away a couple of rooms off of the house!!! Got to keep that mortgage tax deduction!!!

(Just kidding — our house is less than half that 3,000 sq. ft., but Dingell claims this is to reduce “carbon emissions???” Whaaaatttt??????)


44 posted on 10/24/2008 3:30:00 PM PDT by CaliforniaCon
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To: theBuckwheat
“Yet another reason for the Fair Tax.”

As to this point I have seen NO STRONG push to eliminate withholding and the IRS. With out BOTH as preliminaries to the “fair tax” we will end up with both.

So are all those calling for fair tax out protesting JUST the with holding and IRS? NO? Getting the fair tax will NOT make the IRS go away.

End withholding FIRST and you will have my vote. Without ending both FIRST it is just another SCAM to get our money.

As evil as the IRS and withholding are, it means only one tax. IRS + no end to IRS and withholding = all in place and taxing us.

Face facts and past performance of our government. Use your head about this.

45 posted on 10/24/2008 3:35:45 PM PDT by JSteff ( It is ALL about SCOTUS, forget the name of the candidates and vote on that!)
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To: freespirited

Just in the past week we have the Obama Democratsd wanting to kill off ALL tax breaks for 401(k) accounts, for deposits and capital gains, and now they want to kill off housing tax breaks.

This is what the Obama/Pelosi administration wants to do: Tax & Spend.


46 posted on 10/24/2008 3:36:39 PM PDT by CodeToad
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To: CaliforniaCon

“Well, time to go dynamite away a couple of rooms off of DINGELL’s house!!!


47 posted on 10/24/2008 3:39:55 PM PDT by verity ("Lord, what fools we mortals be!")
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To: freespirited

Stupid effort anyways. If you can afford a large home then AMT kills the mortgage deduction.


48 posted on 10/24/2008 3:42:03 PM PDT by PA Engineer (Liberate America from the occupation media.)
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To: Harry Wurzbach
“I guess they can force lenders to identify if a home meets a certain classification when they send in the interest paid form to the IRS.”

No, they would force real estate appraisers to certify the size of every home they appraise and send in forms to the government. They will leave banks out of it as they did with the savings and loan scandals.

Banks are big money contributors to the politicians.

49 posted on 10/24/2008 3:42:05 PM PDT by JSteff ( It is ALL about SCOTUS, forget the name of the candidates and vote on that!)
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To: freespirited

If they’re going to do this, would it be a lot simpler to limit the amount of interest to be deducted to some max amount?

That wouldn’t require people to measure their homes, and the IRS to worry about the size. Nor would it create bizarre anomalies at the threshold.


50 posted on 10/24/2008 4:00:27 PM PDT by Atlas Sneezed (Guns don't kill people, criminals and the governments that create them do.)
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