"Dave" wrote in message
...
On Sun, 28 Sep 2008 19:42:54 -0600, "Charles Momsen"
said:

Mortgage interest tax deduction elimination is on the table to pay for
bailout.

Thank you Democrats!

Actually, there's something to be said for that. The mortgage interest
deduction is one method of throwing taxpayers' money at people who take on
debt to own their homes, at the expense of those who rent. It encourages
debt that may not contribute to overall economic efficiency. In that
regard
it's very much like the deductibility to employers of paying employees'
doctors' bills. When the taxpayer bears half to cost of providing a good
or
service, the result is likely to be higher prices for, and excessive
consumption of, that good or service as compared with the amount that
would
be consumed (and the resulting price) if the person making the decision to
purchase were bearing the entire cost..


Congress has eliminated other deductions in the past. I suppose if the other
inequities in the tax system were fixed, the elimination of this deduction
wouldn't be the end of the world. However, I think it's a pipe dream to
think that would any chance of passing in an election year.

--
"j" ganz @@
www.sailnow.com