Skip to comments.Obama's Budget Seeks to Shrink Tax Benefits of Owning
Posted on 03/08/2009 1:10:16 PM PDT by Nachum
The cluster of special federal tax benefits and subsidies for homeowners has long seemed politically untouchable. Those include deductions for mortgage interest, local property taxes and capital gains exclusions on up to $500,000 in sale profits.
Is the Obama administration serious about beginning to limit at least some of these subsidies?
(Excerpt) Read more at washingtonpost.com ...
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A new kind of politics ... “TAX & SPEND”
Breaks for not paying your mortgage. Penalties for paying it?
the unownership society
Placing taxes at high bracket levels and then inflating away the value of money is soooooo obvious.
"If you don't believe me, refuse to pay the lease next year."
Yup, you get it. (The American dream...pay till you die)
If they continue to punish the “wealthy” i.e., job creators and achievers, pretty soon there will be none left.
As a small business owner that has a $250,000 of revenue, I’d be looking at cutting costs to recuperate this money. So the Obamabots better not complain about getting a pink slip after they get their “free” health insurance.
Don’t forget estate taxes! You pay after you die as well!
If the Democrats get amnesty passed, it's all over for us/Republicans/Conservatives.
Yes, but did he not say that no one who made less than $250,000 per year would pay more in taxes?
Never Trust a Lying Kenyan Commie!
Clearly this wouldn’t apply to our hard working, indispensable elected officials! After all, the interest deduction on more than one home was begun for them. Can’t see any of it going away—for them, that is.
no...it’s called neo marxism- it’s not for personal consumption rather the good of the commune including the freeloaders...
Where my parents live, no property taxes for owners over age 65.
They called them "subsidies"!
Either we force them to retreat on this assault.
Or it will force an open conflict.
I gave this 6 months in the beginning, but looks to me like the next 30 days will seal the outcome.
I, who have faithfully paid my mortgage for 16 years, will have to cough up more in Federal income tax to pay the mortgage of some slob who should never have gotten one in the first place...
btw: “Is the Obama administration serious about beginning to limit at least some of these subsidies?”
since when is paying for something then taking a legal deduction a “subsidy”????? isn’t a subsidy a form of payment???
more socialist theory from the leftists I guess...
Well, please give us a bit of a hint as to the approximate vicinity of this dream place? (no property tax for those over 65)
Obama says he is going to tax the rich. But the rich will always find a way to protect their money. It is the middle class...those who work hard and follow the rules...that Obama’s policies will break. It would be difficult to believe it is not intentional.
They live in rural KY. I don’t know whether it is a policy of the state or county.
I pay my real estate taxes in person. For years I’ve told the same county employees, “I’m here to pay my rent.”
As if the real estate market weren’t bad enough, this will caues it to crash completely.
Mortgage payments not being fully deductable effectively INCREASES the payments, when people already can’t afford them. Also — once they start to monkey with it, there is no guarantee that they won’t eliminate mortgage interest deduction completely, which will mean that a HUGE number of people will NOT be able to afford their mortgage payments, and with that hanging over people’s heads, nobody who doesn’t already own a house will want to own on, and people will put houses on the market, just to get out of having to pay the mortgage payments.
This is what you do, if you completely want to destroy real estate FOREVER — which is exactly what Obama and the Dems are doing, and they are NOT that stupid, so the only other alternative is that they are doing it deliberately, they WANT to destroy private ownership. Then they will take over all private real estate, it will be owned by the government and people can rent from them. THIS is what was going on in communist countries, there was no private ownership.
I don’t think they plan on ever having elections again...
Two things are necessary to establish a dictatorship. The disarming of the populace and the destruction of the middle class.
“Do these fools expect a happy outcome in the 2010 elections?”
I don’t think you caught on yet — just look at where we are after only 6 weeks of Obama administration. At this rate do you really think there will be free elections in 2010? We will have such tremendous crisis that it will be “counterproductive” to confuse people and hold elections.
Remember, what you earn is seen by the government as THEIR'S. Everything you are allowed to keep after taxes is an EXPENSE to the government. If you are keeping more of your money with yourself, it is COSTING the government.
Every penny that you earn and keep with yourself, is an EXPENSE to the government.
People can’t afford their houses now so making it even harder on them is going to make everything better...
I hope people enjoy what is coming...
Pretty much the same here, tax, water bill, whatever; seems everytime I go in that county building, I'm interupting someone's birthday party.
how is letting people keep more of their own money a subsidy?
Yeah. Another fun thing to do is to compare your own property rights to the property rights of the average Chinese person. However, it’s a beautiful Sunday out there, so I recommend you don’t do this.
Cool, where’s that?
More incentive for people to stop paying their mortgage. Morons!
This really doesn’t have anything to do with ownership. The main deduction is the mortgage payment deduction, and that is a deduction for owning not borrowing. We are at the point in our mortgage where we pay mainly principle, and not much in interest. We don’t get much of a deduction. Someone who owns their house outright, will only get to deduct property taxes. We subsidize borrowing, not ownership.
That being said, this is what he said he would do. For all those that stayed home on election day, I guess it made a difference. He is just getting started.
That's going to hurt those in the lib states more than anyone else.
Is he trying to destroy the real-estate market?
That will also hurt the Dem states more than the rest.
Politicizing the Census Bureau is a bad sign.
That ought to invigorate the housing market.
What’s a few thousand more abandoned homes.
Where I live in Alaska, There is a $150,000 exemption on property values for the primary residence of property owners over 65. If your residence is worth more, you pay taxes on the difference.
Not really. What it will increase is the amount of federal tax people have to pay. Will they look at their increased taxes and then decide they can't afford their house? Perhaps.
Given the very low interest rates over the last 10 years, I think many people will find that not having that deduction would make only a small difference. I figured my taxes with and w/o that mortgage deduction and it increased my taxes under $1000.
Ding Ding Ding-we have a winner!
Alaska has a similar policy, but I dont know if its just drastically reduced or eliminated, asking the expert now...(mom)
Its not the destruction of the middle class—its making all of us the “middle class” in a European Socialist model. We will be living in tiny homes and apartments. The goal for your grandchildren will be to have a government job where they won’t have to worry about inflation since the government will give them their yearly cost of living increase. That’s how it is in Cook County now. At the bottom of the middle class will be the entrepreneurs, expected to work long hours for little compensation. The only other class will the the elites—those with the power/money such as government leaders, big Hollywood and the Oprahs, Media leaders, etc. They will not be affected by the policies put in place, which they are doing for the good of “the people”—everyone but themselves.