Is Obama after your mortgage deduction?

One advantage of homeownership is your mortgage interest deduction. But maybe not for long.

By Jim Van Meerten Jul 8, 2010 3:13PM

JVMThe "Robama Hood" administration continues in its quest to rob from the "rich" and give to the "poor." For some reason, they have made it their quest to punish families making over $250,000 and redistribute their "ill-gotten" gains to those making less than $40,000.

One of Obama's targets is the mortgage interest deduction (MID). The Tax Policy Center notes that people making less than $40,000 get an MID of only $91, while the filthy rich making more than $250,000 get an MID of $5,459. The administration estimates that the MID will "cost" the Treasury $131 billion in 2012.

 

Obama's budgets have suggested limiting that deduction for higher-income earners, and other proposals are drifting around D.C. as well. You can read more here.

 

Can you believe that they think the American homeowner is robbing the Treasury? Since when is the executive branch's mission to maximize taxes?

 

Dd my parents raise me wrong? They taught me to study hard and get as much education as I could so I'd land a good job. They also instilled in me that I should find that right person with similar values, get married and have kids when I could really afford them.

I'm not going to make any moral judgment, but let's compare two lifestyles:

Lifestyle No. 1 is a married couple who kept their noses to the grindstone and applied themselves in school until they both had advanced or professional degrees. After they established themselves in their respective careers, they brought children into their world.

Lifestyle No. 2 are players who don't take advantage of the public education offered all children in the U.S. and drop out of school. They together or individually decide that having children is a right, not a responsibility, so just have kids even if they are single or can't afford to raise them.

Which lifestyle do you think is more likely to make over $250,000, and which one is more likely to make under $40,000?

The Congressional Budget Office is recommending replacing your mortgage interest deduction with a 15% tax credit and lowering the limit on the size of your eligible mortgage.

Do we live in the United States of America -- The Land of Opportunity -- or Sherwood Forest?

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

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