mortgage talk: Jordan vs. Liu, and much more.

[Enrique Diaz-Alvarez]

Henry C.K. Liu wrote:
> 
> Not only that; the income from alternative investment is subject to income
> tax, so it becomes a wash with mortgage interest deduction for tax
> purposes. 

Unless you are a millionaire. Then

1) your tax subsidy is 45%+, and if you can take your investment
proceeds as capital gains (easy), you only pay 20%, so it is no longer a
wash

2) The $7,500 loss becomes much smaller relative to the amount of
interest you can deduct; at any rate, if you are rich you probably have
many additional deductions you can take that more than offset the
$7,500.

The mortgage interest tax scam is one of the most effective means of
redistributing income towards the top quintile. That many of those it
hurts the most (non-rich homeowners) still regard it as a good thing is
an impressive feat of public relations and mass deception, ranking up
there with the fake SS "crisis". Repealing it should be at the top of
any progressive agenda.

-- 
Enrique Diaz-Alvarez            Office # (607) 255 5034	
Electrical Engineering          Home #   (607) 272 4808
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