Don't count your chickens.
January 7, 2006 - 11:54pmThere are reasons why, in today's United States of America, you should never think that you know the rules of the game. One day, the Supreme Court could rule that your house be razed for a 7-11 because those "Big Gulps" bring in more tax dollars. Or the President could make a secret pact to ignore a few constitutional amendments (hey, it's not like they're commandments).
Maybe you're looking at buying a house - sure there are property taxes and homeowners (or maintenance) fees, but at least you can deduct your mortgage interest at the end of the year, right? I found an article over at MSNBC awhile ago that suggests Congress is seriously considering the removal of mortgage interest from the list of allowed write-offs, along with a basket full of other fun adjustments.
Take the case of the home mortgage interest deduction — widely seen as the sacred cow of tax reform due to its wide public popularity and its original goal of increasing home ownership. Today, with home ownership at historic highs and cheap mortgage money available to a record number of borrowers, tax reformers suggest its time to take a second look.
Since that MSNBC article, NAHB's been pushing hard to get the proposal moved off the table. Others seem convinced it's the right move. Overall, it just looks like one big mess to me. If the mortgage issue doesn't get you fired up, take a closer look at the reform proposal - you'll find something in there that will. I especially like the part where they want to remove the ability to subtract state and local taxes from everyone's federal tax bill. I like nothing better than to be taxed over and over again on the same amount of money, how about you?