One more point on that proposal by the chairmen of the deficit reduction commission: If they really get rid of the entire home mortgage interest deduction and they also raise the capital gains tax rate and eliminate the capital gains tax exclusion on the first $500,000 in gains on sale of a primary residence, housing prices will decline even more. That's good if you are a renter looking to buy, bad if you are a homeowner already, and bad if you lent money to someone using the value of the home as collateral (banks, holders of mortgage-backed securities). Politically, it's a heavy lift.
The Deficit and Housing
https://www.futureofcapitalism.com/2010/11/the-deficit-and-housing
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by Ira Stoll | Related Topics: Housing, Politics, Taxes receive the latest by email: subscribe to the free futureofcapitalism.com mailing list