Originally Posted by cycleaddict
I agree with this in principal. The government should give equal tax breaks based upon how much are your housing costs.
However, it is their idea to spur the economy by pumping up the housing market. After all they say that is what has kept our economy afloat and humming along for so long- until rates began to rise in the last year or so to head off inflation.
My stance, of course, is that there shouldn't be tax breaks for either.
Here's another example.
Person A has a mortgage on a 200,000 house.
Person B bought the house next door, but paid with cash they inherited from a long-lost uncle.
Why should person A get a deduction and person B not? (again, I think neither should).
cycleaddict is right, we're propping up the housing market, but we've created a country with enourmous personal debt. What happens if oil prices double or triple? what if natural gas supplies continue to dwindle and noone can afford to heat their traditionally built suburban homes? People start to sell, prices plummet and the whole system comes crashing down.
No, I don't really expect the government to give up the abilty to steer their sheep with taxes. That doesn't keep me from wishing though.