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We also need to eliminate the massive government incentives for owning a home, or adding similar incentives for renting.

BenFranklin100 4y ago
The mortgage tax deduction and the Homes Sales Tax exclusion should be eliminated. They are regressive pieces of legislation that serve to widen inequality.
- sokoloff 4y ago
  The mortgage interest deduction serves to put prospective owner-occupants on an equal footing with prospective landlords (for which business loan interest is deductible against profits). The capital gains exclusion I have less strong feelings about, but it amounts in large part to excluding being taxed on the effect of inflation.
  - NoToP 4y ago
    The MDI defines "owner occupant" over "landlord" in such a way as to effectively subsidize the single family detached suburban home lifestyle preference. It encourages the middle class to tie up a big chunk of their net worth in sprawling developments with questionable claims of being an appreciating asset.
    - sokoloff 4y ago
      I’m trying to gain understanding of your first sentence, but have been unable. Landlords can deduct mortgage interest just like any profit-seeking business can deduct interest on loans taken on in furtherance of their business. That’s true for single-family homes or duplexes in a suburb same as a rowhouse, 4-plex or 50-unit building in a city. The owner-occupant deduction applies to their unit, whether that’s all of an SFR, half a duplex, one level of a triple-decker, or 1 unit in a 4-plex.
- lotsofpulp 4y ago
  The mortgage interest tax deduction is effectively eliminated for 90% of Americans because the standard deductions are high enough that 90% of people do not itemize to be able to claim the mortgage interest tax deduction.
  - deleted 4y ago
    [deleted]
  - rcpt 4y ago
    Great let's simplify the tax code and clear it out completely. It's never been good policy.
devmor 4y ago
I dont think we need to eliminate them, just have them only apply to a primary residence.
- ilyt 4y ago
  Yeah the person finally getting enough to own a house is not enemy here
- BenFranklin100 4y ago
  They positively must be eliminated on the primary residence if want to halt the financialization of personal homes. Why should the related well-off be given a tax break anyway? It’s regressive. The US is one of the very few countries that allow mortgage interest to be deducted: https://www.progressivemaryland.org/home_mortgage_interest_deduction_is_regressive https://www.progressivemaryland.org/home_mortgage_interest_d...
  - devmor 4y ago
    I don't think someone buying a home for their family should be considered "well-off". That should be our base standard of living. The US is also one of the only countries where mortgages are so expensive. We wouldn't need the tax breaks if housing prices were low, I suppose.
- maxerickson 4y ago
  To the extent that they probably put upward pressure on housing prices, we should eliminate them.
prox 4y ago
I would file that under A. There is a massive market now that would see any devaluation as bad (they bought into the investment scheme)
amelius 4y ago
And can we please make home ownership (or renting) cost part of the inflation level?
- sokoloff 4y ago
  It already is. Tenant Rent and Owners’ Equivalent Rent (OER) is included. That’s capturing the cost of occupying the property, which is the “cost of living [there]” as separated from the cost of buying it. https://www.brookings.edu/blog/up-front/2022/05/18/how-does-the-consumer-price-index-account-for-the-cost-of-housing/amp/ https://www.brookings.edu/blog/up-front/2022/05/18/how-does-...

BenFranklin100 4y ago

The mortgage tax deduction and the Homes Sales Tax exclusion should be eliminated. They are regressive pieces of legislation that serve to widen inequality.

sokoloff 4y ago
The mortgage interest deduction serves to put prospective owner-occupants on an equal footing with prospective landlords (for which business loan interest is deductible against profits). The capital gains exclusion I have less strong feelings about, but it amounts in large part to excluding being taxed on the effect of inflation.
- NoToP 4y ago
  The MDI defines "owner occupant" over "landlord" in such a way as to effectively subsidize the single family detached suburban home lifestyle preference. It encourages the middle class to tie up a big chunk of their net worth in sprawling developments with questionable claims of being an appreciating asset.
  - sokoloff 4y ago
    I’m trying to gain understanding of your first sentence, but have been unable. Landlords can deduct mortgage interest just like any profit-seeking business can deduct interest on loans taken on in furtherance of their business. That’s true for single-family homes or duplexes in a suburb same as a rowhouse, 4-plex or 50-unit building in a city. The owner-occupant deduction applies to their unit, whether that’s all of an SFR, half a duplex, one level of a triple-decker, or 1 unit in a 4-plex.
lotsofpulp 4y ago
The mortgage interest tax deduction is effectively eliminated for 90% of Americans because the standard deductions are high enough that 90% of people do not itemize to be able to claim the mortgage interest tax deduction.
- deleted 4y ago
  [deleted]
- rcpt 4y ago
  Great let's simplify the tax code and clear it out completely. It's never been good policy.

devmor 4y ago

I dont think we need to eliminate them, just have them only apply to a primary residence.

ilyt 4y ago
Yeah the person finally getting enough to own a house is not enemy here
BenFranklin100 4y ago
They positively must be eliminated on the primary residence if want to halt the financialization of personal homes. Why should the related well-off be given a tax break anyway? It’s regressive. The US is one of the very few countries that allow mortgage interest to be deducted: https://www.progressivemaryland.org/home_mortgage_interest_deduction_is_regressive https://www.progressivemaryland.org/home_mortgage_interest_d...
- devmor 4y ago
  I don't think someone buying a home for their family should be considered "well-off". That should be our base standard of living. The US is also one of the only countries where mortgages are so expensive. We wouldn't need the tax breaks if housing prices were low, I suppose.
maxerickson 4y ago
To the extent that they probably put upward pressure on housing prices, we should eliminate them.

prox 4y ago

I would file that under A. There is a massive market now that would see any devaluation as bad (they bought into the investment scheme)

amelius 4y ago

And can we please make home ownership (or renting) cost part of the inflation level?

sokoloff 4y ago
It already is. Tenant Rent and Owners’ Equivalent Rent (OER) is included. That’s capturing the cost of occupying the property, which is the “cost of living [there]” as separated from the cost of buying it. https://www.brookings.edu/blog/up-front/2022/05/18/how-does-the-consumer-price-index-account-for-the-cost-of-housing/amp/ https://www.brookings.edu/blog/up-front/2022/05/18/how-does-...