- Joined
- Sep 25, 2007
- Messages
- 201
Hi all,
An article from The Edmonton Journal. Excerpts:
It has been referred to as an American birthright, the most sacred tax break, something so sacrosanct that the mere thought of tampering with it was unpatriotic.
And Canadian taxpayers have long coveted our southern neighbour`s beloved mortgage-interest deduction, which permits U.S. homeowners to deduct their mortgage interest from their income for tax purposes.
While such a policy applied in Canada would be extremely popular, it is unlikely to see the light of day, especially given its role in the recent U.S. housing crisis.
Believe it or not, the mortgage-interest deduction was never intended to be a way of promoting home ownership.
Rather, it had its origins in a general deduction for personal interest, which originated in 1913 and has since been curtailed.
But ultimately, the deduction distorts the entire "rent vs. buy" decision by providing what is essentially a tax subsidy to mortgage-laden homeowners at the expense of debt-free tenants and other taxpayers.
In his conclusion, Dr. Ventry calls for a repeal of the mortgage-interest deduction, potentially replacing it with a targeted tax credit for homeowners that is unrelated to the price of the home and the amount borrowed.
http://www.edmontonjournal.com/business/fp...6367/story.html
Keith
An article from The Edmonton Journal. Excerpts:
It has been referred to as an American birthright, the most sacred tax break, something so sacrosanct that the mere thought of tampering with it was unpatriotic.
And Canadian taxpayers have long coveted our southern neighbour`s beloved mortgage-interest deduction, which permits U.S. homeowners to deduct their mortgage interest from their income for tax purposes.
While such a policy applied in Canada would be extremely popular, it is unlikely to see the light of day, especially given its role in the recent U.S. housing crisis.
Believe it or not, the mortgage-interest deduction was never intended to be a way of promoting home ownership.
Rather, it had its origins in a general deduction for personal interest, which originated in 1913 and has since been curtailed.
But ultimately, the deduction distorts the entire "rent vs. buy" decision by providing what is essentially a tax subsidy to mortgage-laden homeowners at the expense of debt-free tenants and other taxpayers.
In his conclusion, Dr. Ventry calls for a repeal of the mortgage-interest deduction, potentially replacing it with a targeted tax credit for homeowners that is unrelated to the price of the home and the amount borrowed.
http://www.edmontonjournal.com/business/fp...6367/story.html
Keith