The Deficit Commission’s Trial Balloon: A Few Good Ideas, and Two Horrible Ones that Deserve to Die
“…Limit mortgage deduction to exclude 2nd residences, home equity loans, and mortgages over $500,000…”
The $500K limit will be particularly knotty, politically. I live in the land of the half-million dollar fixer upper, and can tell you that there are no rich people on my block. This was the difficulty Obama was looking at with letting the “Bush tax cuts” expire. Northeastern and California Dems (and others) were pushing back on the $250K income limit. In many of the bluest states, housing costs and average incomes are significantly above the national average. A two income couple with a couple of kids, making $250K+ are not livin’ large in my area. A cop and a school teacher, with some years on their respective jobs, and some OT, could easily fall into that bracket.
People out there in America sometimes have a hard time wrapping their heads around that, but it’s true.
