It Would Certainly Take Care of Those Pesky Real Estate Bubbles, Though
President Bush's Advisory Panel on Federal Tax Reform is likely to propose next week a change in the deduction for home-mortgage interest that, if adopted by Congress, would have a drastic impact on the Bay Area and other regions with high housing prices.Yet another example of why these panels are mostly a waste of time. Anybody who thinks mortgage deductions are going to be slashed is too politically naive to be offering recommendations about much of anything.Today, a married couple filing jointly can deduct interest on up to $1 million in mortgage debt.
In a meeting Tuesday, the panel agreed to recommend lowering that limit, perhaps to the maximum mortgage that can be guaranteed by the Federal Housing Administration.
Comments
The people on the panel are not politically naive - I think at least some are or were Senators. One object of the panel was to replace the AMT, and I think that by suggesting eliminating the mortgage-interest deduction, they're really saying "don't abolish the AMT".
Posted by: Anthony![[TypeKey Profile Page]](http://www.dailypundit.com/sfrealblog/nav-commenters.gif)
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October 17, 2005 10:11 AM
What reasons do they give for slashing the deductions, just to generate more tax revenue?
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Posted by: Brian | October 19, 2005 03:41 PM
What do you think that would do to the second home coastal home market?
Posted by: bv | November 8, 2005 10:38 PM
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