Since I can't say it better myself, below is an excerpt from the LA Times concerning tax reform and the interest on our mortgage payments is being threatened... So, remember when people said "buy a house, you'll get great tax breaks..." be prepared to possibly say "bye bye writing off my interest!"
Oct. 12, 2005 LA Times:Business
• The amount of a home loan qualifying for a federal tax break could be reduced considerably. By Joel Havemann.
President Bush's tax reform commission tentatively agreed Tuesday to recommend a substantial reduction in the limit on mortgage interest that homeowners can deduct from their taxes.
If a uniform nationwide cap was chosen to replace the current $1-million limit on mortgage debt eligible for deduction, it could be widely felt in California, which has some of the nation's highest home prices.
But to account for the wide disparity in home values nationally, the panel considered recommending a ceiling based on local housing prices but left the issue open, to be decided later. Some panel members suggested basing the limit on the Federal Housing Administration's maximum on mortgages it will insure — currently $312,895 in Southern California.
...A lower limit "would be devastating to the homeowners of California," said Vince Malta, president-elect of the California Realtors trade group.
He calculated that a $350,000 limit would result in a loss of $6,170 a year in deductions for a family that bought a median-priced home by putting 20% down and taking out a 5.87% mortgage — the going rate — to cover the rest.
CAN SOMEONE TELL ME WHERE YOU CAN FIND A $312,895 HOUSE IN SOUTHERN CALIFORNIA NOW???? AND LET ME CLUE YOU IN... FOR THOSE OF YOU WHO KNOW MY TEENY, LITTLE "COZY" 652 SQ. FT OF HOUSE HERE IN HIGHLAND PARK... YES- IT'S WORTH MORE THAN $312,895.00. Oh- and by the way- the tax reform includes restrictions to any write offs with your health care costs too. You know, because our health care is dismal anyway- why not make sure it's completely devastating!
AND has anyone seen how much Dick Chaney's Halliburton stock's gone up... An analysis released yesterday reveals that Vice President Cheney's Halliburton stock options have increased in value 3,281 percent in one year. The stock options, which were worth $241,498 one year ago are now valued at $8,165,489.07. HEY! THANKS TO ALL THOSE POOR (AND I MEAN POOR IN EVERY SENSE OF THE WORD) SOLDIERS IN IRAQ FOR PUTTING THIER LIVES ON THE LINE OR DYING SO THAT DICK AND HIS CRONIES CAN GET BIG FAT BANK ACCOUNTS! MAYBE WHEN/IF YOU COME HOME AND THE VA HAS NO MONEY FOR YOUR INJURIES OR MEDICAL CARE... YOU CAN CALL GOOD OLD DICK!??