"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..

It's not necessarily at the expense of those who rent. The landlord may have
a mortgage on the property and the tax savings is passed on to the tenant.
Are you implying that if the deduction were eliminated for the landlord that
rents would remain unchanged? So how do renters pay for the interest
deduction of homeowners? Is there a specific tax?

What is the criteria for debt to contribute to "overall economic
efficiency"? What is the definition of "overall economic efficiency" and how
is it measured?

However, your point is well taken. Throwing taxpayers money at a large,
bloated military probably does not contribute to overall economic
efficiency. Rather, each citizen should bear the cost and burden of the
common defense with an assault rifle mounted above the fireplace, a howitzer
in the garage and a lifetime of obligated military service.

The income one has after all taxes are paid, is that money gained at someone
elses expense? Is the income you're allowed to keep really other taxpayer's
money?

Is property theft?