In the area I grew up in, most of them had already closed so the locals won't feel that. The crazy thing is that this is due to policy decisions made by Republicans but few understand that. (Most likely they just attribute it to rural decay.)
Umm, have you looked at interest rates? 7% interest on a $400,000 note is $28,000. That doesn't include the $4k or so that person is paying in property taxes. Those two together smash the hell out of the standard deduction even for married couples and before they take any other deductions.
It's a good point. With rates as high as they are (and increasing - thanks Trump!) it does bring the mortgage deduction more into play.
The NYT article said that entirely eliminating the mortgage tax deduction would save over one trillion dollars over the next 10 years, so it sounds like there is at least one hundred billion deducted each year.
I’d call it a tax hike on upper middle class. There is a sweet spot where the mortgage has to be high enough to justify itemizing over the higher standard deduction, but not so high that you bump into the $750k mortgage cap.
It's ALWAYS a tax hike on the upper middle class. So was the SALT deduction limit.
I think this doesn't align with the reality of current rates. A $400k note is BARELY middle class now and that note puts most borrowers easily over the standard deduction amounts.
But how many people have mortgages at today’s rates? You probably have more of the stats than I do, but I’d bet that 95% of all current mortgages were written in 2021 or earlier.
And blue-staters.
Didn't you hear? Everyone who felt terrible about the economy on November 4 suddenly started to feel great about it on November 6.
I don't think there's any doubt that Dems aren't getting through to rural poor (as they haven't for decades) but if you think there are people on Medicare or Medicaid who won't care about losing it and having to pay out of pocket for medical insurance or go without, I think you're quite mistaken. (Personally I'm sure the GOP is much more likely to cut from Medicaid than Medicare anyway.)
Luckily I received a large deposit from a 2021 refile in December. If they took any longer, it probably would have never happened.
Agreed. Repealing the mortgage intertest deduction would double the penalty of selling. It would seize up a real estate market that is already broken.
Yeah grandfathering in property tax rates like that is terrible policy. But repealing it will be really unpopular with existing homeowners whose rates will explode, so I dunno where they go from here.
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