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Gingrich: Romney’s mortgage deduction idea ‘class warfare’
The Wall Street Journal - Market Watch ^ | April 18, 2012 | Robert Schroeder

Posted on 04/18/2012 7:21:51 PM PDT by SoConPubbie

Republicans aren’t shy about lobbing the “class warfare” charge at Democrats. But now Newt Gingrich is aiming those words at Mitt Romney over Romney’s idea to scrap or limit the mortgage-interest deduction for second homes.

Romney, the Republicans’ all-but-certain presidential nominee, told donors in Florida last weekend that he’d take away the deduction for high-income earners. His campaign later said it was just an idea, not a hard-and-fast policy. But Gingrich took it as gospel.

“Governor Romney’s proposal to limit certain tax deductions based on income, including the deduction for mortgage interest on second homes, is a surrender to the class warfare rhetoric of the Left,” said the former House Speaker during a campaign stop in Lititz, Pa.

Gingrich — who’s still officially in the GOP race — says a better idea is an optional 15% flat tax that allows Americans to keep their deductions or move to a one-page tax form.

Romney, meanwhile, doesn’t seem to be paying much — if any — attention to Gingrich. The former Massachusetts governor on Wednesday afternoon is giving what he calls a “prebuttal” to President Obama’s Democratic National Convention speech in Charlotte, N.C. Romney on Wednesday also picked up a big-name endorsement, from Indiana Gov. Mitch Daniels, who said Romney will unify the party.

(Excerpt) Read more at blogs.marketwatch.com ...


TOPICS: Politics/Elections
KEYWORDS: classwarfare; classwarfaremitt; classwarrior; mortgagededuction; newt; romney; stupidparty
"If we must have an enemy at the head of Government, let it be one whom we can oppose, and for whom we are not responsible, who will not involve our party in the disgrace of his foolish and bad measures." - Alexander Hamilton
"We don't intend to turn the Republican Party over to the traitors in the battle just ended. We will have no more of those candidates who are pledged to the same goals as our opposition and who seek our support. Turning the Party over to the so-called moderates wouldn’t make any sense at all." -- President Ronald Reagan
"A thing moderately good is not so good as it ought to be. Moderation in temper is always a virtue; but moderation in principle is always a vice." - Thomas Paine 1792

1 posted on 04/18/2012 7:22:00 PM PDT by SoConPubbie
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To: SoConPubbie
What it the purpose for a an interest deduction on a vacation home?
2 posted on 04/18/2012 7:27:10 PM PDT by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both)
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To: BenLurkin

It’s so that urban wealthy can live in the city while also buying up rural land, making it unaffordable for the people that actually live there.


3 posted on 04/18/2012 7:29:11 PM PDT by freedomfiter2 (Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
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To: SoConPubbie
We can't get this man off the national stage fast enough.


4 posted on 04/18/2012 7:30:50 PM PDT by arderkrag ("WAAHH WAAAHHH SCOTUS" is no excuse to vote for Romney. LOOKING FOR ROLEPLAYERS. Check Profile.)
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To: BenLurkin
What it the purpose for a an interest deduction on a vacation home?

To try and increase/spur home sales probably, but why the question?

If Romney truly was trying to solve the tax/budget problem he'd be proposing to drastically slash the size of Government while drastically cutting and simplifying the tax rates.

He'll do neither because he's not a conservative, but a Progressive Liberal.

Oh he'll make noise about something, but nothing of substance will ever come of it because in his heart he's not a conservative.
5 posted on 04/18/2012 7:30:59 PM PDT by SoConPubbie
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To: SoConPubbie; Jim Robinson; RedMDer; DJ MacWoW; TheOldLady; trisham; The Cajun; MEG33; JoeProBono; ..
Romney on Wednesday also picked up a big-name endorsement, from Indiana Gov. Mitch Daniels, who said Romney will unify the party.

ROTFLMYGOPestablishmentOFF

6 posted on 04/18/2012 7:31:58 PM PDT by onyx (SUPPORT FREE REPUBLIC, DONATE MONTHLY. If you want on Sarah Palin's Ping List, let me know.)
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To: SoConPubbie
All the mortgage deduction does is raise the price buyers are willing to pay for a house.

Lose the deduction, and the price of houses decreases proportionately.

It's another shell game the government plays to make you think you're getting something from them.

7 posted on 04/18/2012 7:35:23 PM PDT by E. Pluribus Unum (For every black person murdered by a white, thirty-nine white people are murdered by blacks.)
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To: SoConPubbie

Romney’s idea won’t win any friends among my neighbors. At least two of them are still paying on a second home and they are by no means “wealthy” people. Just regular old 5 figure blue collar people.


8 posted on 04/18/2012 7:36:59 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: SoConPubbie

He won’t touch the EPA, he won’t touch education, the DOE will continue doing nothing, the green speculators will continue to gamble with tax dollars.....


9 posted on 04/18/2012 7:40:04 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: FReepers
Here comes the orator! With his flood of words, and his drop of reason. Benjamin Franklin


Click The Pic

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10 posted on 04/18/2012 7:42:02 PM PDT by DJ MacWoW (America! The wolves are here! What will you do?)
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To: SoConPubbie

Wow, another liberal talking point/idea from Romney - not surprised.


11 posted on 04/18/2012 7:42:57 PM PDT by svcw (If one living cell on another planet is life, why isn't it life in the womb?)
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To: svcw

I don’t expect him to win but it wouldn’t shock me if he switched parties in the white house if he did.


12 posted on 04/18/2012 7:47:15 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: SoConPubbie
"Mitch Daniels, who said Romney will unify the party."

Whoever it was is a fool - Romney has divided the party more than it has been in four decades.

13 posted on 04/18/2012 7:48:07 PM PDT by Ron C.
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Comment #14 Removed by Moderator

To: onyx

Thanks for the ping!


15 posted on 04/18/2012 7:55:37 PM PDT by Alamo-Girl
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To: bearinthewoods

“Do you spend all your time posting anti-Romney rants?”

It’s SCP’s time. What do you care how it is spent?


16 posted on 04/18/2012 8:02:44 PM PDT by GenXteacher (You have chosen dishonor to avoid war; you shall have war also.)
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To: E. Pluribus Unum; BenLurkin

Interest on any investment is an investment expense. Borrowing money to make money is a prime tool of capitalism. Margin interest when trading stocks is also part of the expense involved in investing, and it is also deductible from the profit made on the investment so they only pay income tax on the “net profit”.

When someone buys a vacation home for $200K and sells it 30 years later for $500K, should they be taxed on $300K “gross profit” when they in fact paid more than that amount in investment expenses along the way and were left with zero “net profit” ? That would put the individual at a serious disadvantage compared to businesses that get to deduct their business expenses from their profits and pay income tax only on their “net profit”.


17 posted on 04/18/2012 8:03:44 PM PDT by Kellis91789 (The ultimate result of shielding men from the effects of folly is to fill the world with fools.)
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To: cripplecreek

Romney will sink his own boat with his mouth. Today, I’m hearing names being bounced around now for VP slot. Senators that no one has heard of. A losing combo. Rubio was mentioned but Rubio was quite clear last week in that there is no way. Was that just B.S.?


18 posted on 04/18/2012 8:07:57 PM PDT by Outlaw Woman (The biggest Hate group in America is located in the White House, Congress & DOJ)
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To: BenLurkin

“What it the purpose for a an interest deduction on a vacation home?”

To encourage people to waste money on something not needed, so that they can feel good about sticking it to Uncle Sam. Why do you ask?

Actually, I wouldn’t mind seeing the entire deduction (first and second homes) done away with, just so we can start to get money from the middle class, and maybe get a bit closer to balancing the budget. Better yet, maybe leave the deduction and instead turn SS and Medicare into means-tested welfare programs. But do one of the two...because my kids are going to SUFFOCATE under this debt we’re running up today.


19 posted on 04/18/2012 8:13:07 PM PDT by BobL
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To: BenLurkin

Thought the same thing. If someone needs the deduction when interest rates are so low, maybe he shouldn’t be buying a second home.


20 posted on 04/18/2012 8:14:58 PM PDT by Mamzelle
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To: E. Pluribus Unum

Yes, of course. The deduction merely promotes housing. A general deduction, of anything. Would be more valuable than Gov’t helping to pick winners and losers. If you could use the deduction, to purchase a washer, car, porn, guns, etc. But, this only helps to inflate home values.


21 posted on 04/18/2012 8:17:04 PM PDT by Theoria (Rush Limbaugh: Ron Paul sounds like an Islamic terrorist)
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To: bearinthewoods; arderkrag
Do you spend all your time posting anti-Romney rants information?

Thank you.

22 posted on 04/18/2012 8:17:30 PM PDT by svcw (If one living cell on another planet is life, why isn't it life in the womb?)
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To: SoConPubbie
To try and increase/spur home sales probably, but why the question?

In other words to pick that the home seller is the winner and the home buyer is the loser?

Getting a deduction on a second home is ridiculous. Since shelter is a basic need I can see it justified for one home. Because if a person loses their home, it could end up being a liability to the government safety net anyway, if they have to offer public housing. But a second home is not a common need and not justifiable as a tax deduction. The government is not going to have to step in and provide a safety net for someone who loses their SECOND home.

And no I'm not pro-tax. I'm pro-lower taxes with less deductions so everyone gets to benefit and not just people who behave in the way the government mandates, dictates or subsidizes.

23 posted on 04/18/2012 8:26:54 PM PDT by JediJones (From the makers of Romney, Bloomberg/Schwarzenegger 2016. Because the GOP can never go too far left.)
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To: SoConPubbie

You go Gingrich!

Nail that RINO Romney to the wall on this!!!


24 posted on 04/18/2012 8:35:21 PM PDT by TexasFreeper2009 (Go Newt!)
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To: BenLurkin
For many people the second home is a retirement investment. Work for decades, retire, sell out and move to a warmer cheaper location where you have a cabin or condo waiting for you.

Like many retirement investments, it has had interest deductibility as a tax advantage over the years.

25 posted on 04/18/2012 8:39:55 PM PDT by hinckley buzzard
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To: JediJones

This is why we will spend ourselves into oblivion, even here on FR people are not willing to do away with vacation home welfare. Lower the rates and eliminate all market distorting deductions.


26 posted on 04/18/2012 8:46:17 PM PDT by gusty
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To: SoConPubbie

Thank you Newt for making the conservative case. Please stay in it until Texas so I can vote for you. I hope TX is going to change to winner take all!


27 posted on 04/18/2012 9:38:25 PM PDT by mtrott
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To: gusty

When I was a kid growing up in Louisiana, my parents had a “vacation home.” They called it a fishing camp, because that’s essentially what it was. My dad bought a military surplus Army barracks complete with cots and had it moved to a small lot the family owned on Little River, about 40 miles from our home. He added a cistern to catch rain water, and his friends helped him pour a slab and build a screened-in front porch onto it.

On weekends and during vacations, we would drive up there and go fishing and swimming. It was hardly the lap of luxury. There was no air conditioning, and a wood stove furnished the only heat. Heck, we didn’t even have electricity for the first couple of years we owned it. Candles and Coleman lanterns sufficed. All cooking was done on a Coleman portable stove until my parents got a new range & oven for our house and moved the old one up to the camp. We made do with ice chests until they did the same with their old refrigerator.

Not all “vacation homes” are palaces.


28 posted on 04/18/2012 10:43:45 PM PDT by Josh Painter ("We will not save our country by becoming like the left." - Sarah Palin)
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