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View Diary: Killing Sacred Liberal Cows, or What Economists Think About the Economy (105 comments)

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  •  Not complete BS but I must (3+ / 0-)

    agree that anyone that lets Koch Bros. shill Russ Roberts describe himself as a libertarian is shoveling hard.

    The point about the politically popular mortgage interest deduction is more nuanced,I'd say,because it is a deduction that favors the wealthier among us.Currently,we allow this deduction on mortgages up to 1M,and include both 2nd homes and yachts. In the spirit of bipartisany,I support Simpson-Bowles changes on this. 500K mortgage cap,no second home deduction,no home equity deduction. (kinda wobbly on the last bit I admit) Here is why:

    But it does have an impact in states where income and housing prices are higher. Melissa Labant, technical manager at the American Institute of Certified Public Accountants, calculated two situations for middle- and upper-income homeowners in more expensive states.

    lIn the first situation, consider a couple who earn $137,300 a year and are in the 25 percent tax bracket. If they owned a $350,000 house paying 5 percent interest on their mortgage, they would save $4,375 a year on interest of about $17,500.

    For the wealthiest homeowners the deduction is far better. People with $1 million homes with the same 5 percent rate would be paying $50,000 a year in interest. As they would most likely be in the top 35 percent tax bracket, they would save $17,500 a year in federal taxes through the deduction.

    Whole article is here

    A similar take is here

    "George RR Martin is not your bitch" ~~ Neil Gaiman

    by tardis10 on Thu Nov 15, 2012 at 12:22:15 PM PST

    [ Parent ]

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