Dick Morris has an interesting video out discussing the plan to eliminate the mortgage interest deduction. Those who believe this will stimulate people to buy houses are part of the same crowd that believes spending a trillion dollars stimulates economies. They are also part of the same crowd that is always shocked that the economic numbers are not what they expected.
I don’t know why this would surprise anyone. Obama is a Democrat and Democrats like to tax, eliminate tax deductions, and spend like there is no tomorrow.
If we ran our budgets like the federal government runs its budget the banks would stop lending us money and we would not be able to get credit. Our credit companies would NOT raise our limit so we could spend more of what we do not have.
So why is it the federal government is deciding to raise its own limit? Shouldn’t the people who extend the credit be doing that?
But don’t worry; the government will make up the shortfall by taking away tax deductions.
Personally, I would be fine with no deductions if they had a flat tax that everyone paid and that they could not increase without a super majority vote. Instead, taxes go up, deductions go down and government spends like there is no limit to the amount of money available.
Never surrender, never submit.