On Sun, 24 Jul 2011 14:43:29 -0400, John H
wrote:

On Sun, 24 Jul 2011 10:47:58 -0400, Wayne B wrote:

On Sun, 24 Jul 2011 06:15:23 -0700 (PDT), John H
wrote:

Eliminate all mortgage interest deductions. That'll do it better.



At least it would be fair across the board. Might not be popular and
might have a somewhat detrimental impact on the housing market. It
would probably help the rental market though.

===========

Home ownership has always been part of the American dream and the
interest rate deduction is a tacit reaffirmation of that goal.
Without question home ownership leads to a more stable citizenship and
increased two parent family formation. Those were worthwhile goals at
the time and still are.

I'm not knocking home ownership. I think it's great. But, if the mortgage interest deduction were
removed, I still think people would want to buy a home. I don't think that would change. However,
for many people, the cost would have to come down far enough to offset the lack of the interest
deduction.

I don't disagree. One thing in favor of the current policy is that
because interest payments front load into the early years of the
mortgage, buyers receive the greatest benefit from the deduction when
they need it most. Boats are a little different since they are
typically financed over a much shorter period of time and are a luxury
item with no overall benefit to society much as I hate to say it.
Still, it's not fair to people who financed a boat with the
expectation of deductible interest to have the rug yanked out from
under them.

On Sun, 24 Jul 2011 15:37:38 -0400, Wayne B wrote:

On Sun, 24 Jul 2011 14:43:29 -0400, John H
wrote:

On Sun, 24 Jul 2011 10:47:58 -0400, Wayne B wrote:

On Sun, 24 Jul 2011 06:15:23 -0700 (PDT), John H
wrote:

Eliminate all mortgage interest deductions. That'll do it better.



At least it would be fair across the board. Might not be popular and
might have a somewhat detrimental impact on the housing market. It
would probably help the rental market though.

===========

Home ownership has always been part of the American dream and the
interest rate deduction is a tacit reaffirmation of that goal.
Without question home ownership leads to a more stable citizenship and
increased two parent family formation. Those were worthwhile goals at
the time and still are.

I'm not knocking home ownership. I think it's great. But, if the mortgage interest deduction were
removed, I still think people would want to buy a home. I don't think that would change. However,
for many people, the cost would have to come down far enough to offset the lack of the interest
deduction.

I don't disagree. One thing in favor of the current policy is that
because interest payments front load into the early years of the
mortgage, buyers receive the greatest benefit from the deduction when
they need it most. Boats are a little different since they are
typically financed over a much shorter period of time and are a luxury
item with no overall benefit to society much as I hate to say it.
Still, it's not fair to people who financed a boat with the
expectation of deductible interest to have the rug yanked out from
under them.

Amen, especially if, as in your case, the boat really *is* used as a second home.