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The fiscal -- the mortgage interest deduction perhaps no longer the sacred cow it is on the table.
For cuts to help avoid going over that -- joining me now with his take on how does it affect you directly in the housing market overall should call -- -- dot com they are serious about office at this point.
But -- candidates President Obama and Mitt Romney neither willing to address -- in the debates now although it is on the table what do you think are.
-- -- -- That's -- -- with -- hearing about the mortgage interest deduction back through the campaign.
But the suggestions -- getting more and more specific -- one possibility.
Is that the amount that can be deducted would be capped at 500000 -- -- -- million.
Or the rate at which mortgage interest to be deducted -- it -- -- the top marginal tax rate.
So why -- -- -- can take let's say that might I'm deducting a hundred dollars right so right now at this point it's it's 35 bucks but now my deduction allowed B 28.
Efforts -- one -- if -- -- cuts and tax bracket now instead be able conduct 35 dollars for every hundred dollars in interest.
It might only be 28 dollars you would -- -- that's one option being discussed.
You know and it did what third of filers in this country right now itemized deductions a big piece of that is the mortgage interest deduction I mean half of those that mostly use the mortgage deduction -- this filers.
That as the biggest percentage of their -- like 40%.
That's right that's that's got to go go into the middle class on a nationwide base.
Steps right in fact we look at the types of deductions that the middle class and lower income households itemized by far the biggest one is the mortgage interest deduction and when you -- on top of that.
The -- conductor property taxes.
Roughly half of the -- deductions that people take on their taxes are housing related.
You know 96% of those that make 200000 dollars and above it and you're talking about -- the quote unquote wealthy you look at the map the United States -- -- that's a different story that.
Now if that if -- does come down to 500000.
How much more would be affected do you think -- a percentage basis how many more of these filers -- be if act.
So the effect would really differ geographically in some of the more expensive markets New York California.
Other most consumers in the country.
There are a lot of people of mortgages more than 500000 dollars.
They'll be affected directly especially higher income households.
In a higher tax bracket.
Building more effective.
The other group that actually gets more effective is younger households -- -- in the earlier years of the mortgage member in a mortgage.
You're at first mostly paying interest then shift the principal and the more you paying interest the younger you are right more -- be affected.
If the mortgage interest deduction can't.
Overall gonna hurt the housing market ended actually bring values down which is again a housing negative -- -- jet thank you very much thanks for -- local courses for naturally that somebody else --
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