Senate’s handling of MID a head scratcher

From HousingWire:

Housing industry gives mixed response to Senate tax reform bill

One of the biggest changes from the House tax reform bill is that the Senate’s version would leave the mortgage interest deduction intact at its current cap of $1 million. The House tax reform bill would cut the MID in half to a cap of $500,000.

But despite leaving the MID intact, the Senate’s bill has still received mixed reactions from the housing industry. One expert said this is hardly a relief as the Senate’s bill would still double the current standard tax deduction.

“While the Senate’s proposed tax bill makes the MID whole on paper by raising the cap back to $1 million in deductible interest, champions of the deduction won’t exactly be breathing a sigh of relief,” Zillow senior economist Skylar Olsen said. “Like the House bill we saw last week, the Senate’s tax bill still proposes doubling the standard deduction, and the Senate wants to completely remove the state and local property tax deduction.”

“Under the Senate bill, Zillow’s analysis shows that in most places, even fewer households would itemize deductions, meaning an even smaller sliver of homeowners would benefit from the MID, rendering the MID a much more niche tax benefit,” Olsen said. “That is sure to cause a stir among industries that rely on widespread use of the MID.”

The National Association of Realtors, one of the most vocal defenders of the mortgage interest deduction, said just keeping the mortgage interest deduction intact isn’t good enough.

“While we are still reviewing the outlines of this proposal, we are watching closely for changes to current law that might leave middle-class homeowners, and homeownership broadly, in a worse place than it is today,” NAR President Elizabeth Mendenhall said.

“We’ve already seen that a near-doubling of the standard deduction, combined with the elimination of other deductions like the state-and-local tax deduction, can turn the American Dream into a nightmare for families, as the rug is pulled out from under them,” Mendenhall said. “Simply preserving the mortgage interest deduction in name only isn’t enough to protect homeownership.”

This entry was posted in Economics, Mortgages, National Real Estate, Property Taxes. Bookmark the permalink.

67 Responses to Senate’s handling of MID a head scratcher

  1. The Original NJ ExPat says:

    fristy!

  2. The Original NJ ExPat says:

    Change the law such that homes can only be bought cash only, then we’ll find out who are the real homeowners.

  3. The Original NJ ExPat says:
  4. Grab them by the puzzy says:

    @womensmarch

    .@Keurig and @realtordotcom have pulled their advertising dollars from Hannity. More companies should use the power of their dollars to stop giving airtime to sexual predators and those who give them a platform.

  5. grim says:

    More companies should use the power of their dollars to stop giving airtime to sexual predators and those who give them a platform.

    Except if it’s the Clintons, in which case being a sexual predator is acceptable.

  6. Ottoman says:

    I’ll bet you voted for the pvssy grabber who won. The vast majority of right wingers did.

    “Except if it’s the Clintons, in which case being a sexual predator is acceptable.”

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  8. The Original NJ ExPat says:
  9. JJ fanboy says:

    Keurig. Not my cup of tea. Switched to nespresso.

  10. JJ fanboy says:

    Off topic. Can anyone recommend a book or website for kids that want to learn to code? My 9 year old seems interested . She said they are learning to code with blocks at her school.

  11. D-FENS says:

    There’s nothing left of the Giants to boycott.

  12. D-FENS says:

    She’s advocating for a higher child tax credit.

  13. JJ fanboy says:

    Grim,

    Thanks.

  14. Bagholder says:

    ‘Off topic. Can anyone recommend a book or website for kids that want to learn to code? My 9 year old seems interested . She said they are learning to code with blocks at her school.’

    My 10-year-old went thru Scratch and some HTML/CSS. I’m steering him towards Python because it reads plainly, and has a simple syntax.

    Take a look at Code Academy, they have free online courses.

  15. D-FENS says:

    Butthurt NJEA now targeting Tom Moran…the ultra liberal Star Ledger Editorial writer from Montclair.

    https://www.njea.org/tom-moran-flacking-sweeney-norcross-machine/

  16. Alex says:

    The Washington POSt,

    Nothing but an untrusty mouthpiece for the Democrat swamp.

  17. D-FENS says:

    https://www.politico.com/newsletters/new-jersey-playbook/2017/11/13/njea-targets-moran-menendez-deliberations-continue-with-drama-election-results-could-be-omen-for-gop-congressmen-223300

    By Matt Friedman (mfriedman@politico.com; @mattfriedmannj)

    The NJEA, smarting off an embarrassing and extraordinarily expensive loss against Senate President Stephen Sweeney only to see him win by double-digits, has turned its ire on Star-Ledger editorial page editor Tom Moran, a harsh critic of the union.

    Moran’s offense: He tweeted that “Top Dems in NJ, deep down, want to murder the leaders of the teachers union.” That’s not a good choice of words. It’s also obviously hyperbole. I’ve certainly used that expression in casual conversation with people. Haven’t you? Moran deleted the tweet.

    The official line of the union is that Moran, a caustic critic of the union, should apologize. “There is no place in public discourse for the kind of violent language that Tom Moran used on Twitter yesterday. His casual reference to the alleged desire of some top Democrats to murder NJEA’s leadership is disturbing and inappropriate,” NJEA spokesman Steve Baker wrote in an op-ed.

    Moran told me he did apologize in an email to the union. “I do regret it. Some people apparently took me literally. It was a figure of speech,” Moran said over the phone. “I told the NJEA just before their email went out that I apologized to them directly. And I posted on my Facebook account: ‘Oops, sorry. My mistake.’”

    But the NJEA is also retweeting from its official account tweets calling for Moran to be fired.

    Those of you who have been here for a little while will remember the NJEA once found itself on the opposite side of a very similar situation, when its Bergen County president joked about wanting Gov. Christie dead. Christie took umbrage and forced the statewide union’s president to come to his office and apologize, inviting the media to catch her on her way out. Christie called for the Bergen County official’s firing, which the NJEA didn’t do.

    If you take Moran’s tweet literally, you could be picturing Loretta Weinberg with a switchblade…. I’m sorry, that was wrong. She would have a smart gun.

  18. D-FENS says:

    Pay no attention to North Jersey politicians. South Jersey Democrats now run the state.

  19. Jay says:

    Can anyone recommend a CPA in Monmouth county?

  20. The Great Pumpkin says:

    Amazing, right? Norcross machine. He should be kicked out of politics.

    Glad the njea attacked his machine. They assumed the njea would always financially support the Dems, and are now pissed when the njea went on the attack supporting republicans in the election.

    D-FENS says:
    November 13, 2017 at 10:57 am
    Pay no attention to North Jersey politicians. South Jersey Democrats now run the state.

  21. nwnj says:

    I’ve often suspected that Pumpy worked in a school do his posting patterns. The flood of garbage that he unleashed last week during the convention was epic. Did any of the sleuths ever verify that?

  22. nwnj says:

    Politicians and lobbyists at each others throats is a beautiful thing. It’s a win for the people. The corruptive nature of the shadow government is being exposed. Too bad it’s such a rarity and it’s typically the constituency that is beign divided.

  23. The Great Pumpkin says:

    Nwnj….yes, you have it all figured out.

    I posted like crazy last week because this tax reform has me fired up. I thought it was obvious.

  24. The Great Pumpkin says:

    You think I want to pay over 10,000 more in taxes that don’t benefit nj or myself at all? Worse part, they are asking me to pay more to help some billionaire get a tax cut. Bunch of jerkoffs.

  25. JJ fanboy says:

    Bagholder

    Thanks. I will check that site out too

  26. JJ fanboy says:

    Pumpkin,

    I hear you. Losing the personal exemptions and property taxes could cost us 3k or more a year. With rising medical costs, loss of tax deductions, how are people supposed to save for retirement and college?

    And a lot of people in those blue ribbon towns are posers living paycheck to paycheck. All their wealth is in their house and retirement funds. Having to pay 5-10k a year more in federal taxes will force them to slash consumption, reduce saving for retirement and college, or live on credit cards and home equity. Most of the people I knew who were living in pos capes or small colonials in those towns were treading water at best. Some were in their 40s and unable to save anything.

  27. The Great Pumpkin says:

    Perfectly stated. I don’t know if they were thinking when they came up with this tax reform plan. Going to do major damage to the most productive economies and most important consumer spenders in our country. Why would you do that? Idiocracy at its best.

    JJ fanboy says:
    November 13, 2017 at 12:17 pm
    Pumpkin,

    I hear you. Losing the personal exemptions and property taxes could cost us 3k or more a year. With rising medical costs, loss of tax deductions, how are people supposed to save for retirement and college?

    And a lot of people in those blue ribbon towns are posers living paycheck to paycheck. All their wealth is in their house and retirement funds. Having to pay 5-10k a year more in federal taxes will force them to slash consumption, reduce saving for retirement and college, or live on credit cards and home equity. Most of the people I knew who were living in pos capes or small colonials in those towns were treading water at best. Some were in their 40s and unable to save anything.

  28. grim says:

    What’s the point of a lobbying organization if they’ve attacked the sitting legislature and made enemies?

    They will be completely ineffectual as an industry lobby now.

    The whole of the NJEA is in question.

  29. Grab them by the puzzy says:

    @nytimes

    Breaking News:

    Mitch McConnell urged Roy Moore to quit the Alabama Senate race, saying
    “I believe the women” who accused Moore of sexual misconduct

  30. The Original NJ ExPat says:

    https://www.w3schools.com/

    Off topic. Can anyone recommend a book or website for kids that want to learn to code? My 9 year old seems interested . She said they are learning to code with blocks at her school.

  31. The Great Pumpkin says:

    I posted like crazy last week because this tax reform has me fired up I’m Pumpkin, that’s what I do. I thought it was obvious.

    Also Daddy/abandonment issues.

  32. Juice Box says:

    re: ” They will be completely ineffectual as an industry lobby now.”

    Grim they show them the money?

    NJEA spends millions in campaign contributions and running their own ads, they are the largest special interest in the state.

  33. Blue Ribbon Teacher says:

    They’ve been ineffective for 10 straight years.

  34. Blue Ribbon Teacher says:

    I’ve often suspected that Pumpy worked in a school do his posting patterns.

    Bad assumption. Look at my posting patterns. 99% of them are after 3.

  35. No One says:

    My suspicion is that Pumpy’s wife is somehow in the education/government biz. Would explain where he gets his “high taxes are deserved for quality towns” and “more spending = better quality of life”. And he gets upset at claims government pension promises aren’t sacrosanct. I don’t know where he gets his “keep colored people out of my town and together where they belong” opinions. Maybe from grammy.

  36. The Great Pumpkin says:

    Nope, commercial real estate company.

    My suspicion is that Pumpy’s wife is somehow in the education/government biz.

  37. Juice Box says:

    2nd time is a charm…..

    “The jury in the trial of Sen. Robert Menendez told the judge Monday afternoon that they were deadlocked and could not reach a verdict. U.S. District Judge William Walls sent them home early and told them to try again on Tuesday.”

    http://www.nj.com/politics/index.ssf/2017/11/menendez_jury_tells_judge_they_cannot_reach_a_verd.html#incart_2box_nj-homepage-featured

  38. The Original NJ ExPat says:

    All you need to know about McConnell is that he no opinion whatsoever about Menendez, yet he offers absolute judgement based on a MSM/DNC hit job. This is easily explained. Menendez is part of his club and he wishes to bar entry to the same club for Moore (as if you weren’t convinced by the tens of millions he already spent to try to finish Moore off in the primary).

    BTW, slick willy was 27 years older than Monica Lewinsky when he shoved a Cuban up Monica’s woo-hoo and jizzed on her dress.

    Oh, my my, oh, hell yes
    Honey, I’m gonna jizz on that party dress
    Buy me a drink, sing me a song
    Take me as I come ’cause I can’t stay long

    Mitch McConnell urged Roy Moore to quit the Alabama Senate race, saying
    “I believe the women” who accused Moore of sexual misconduct

  39. The Original NJ ExPat says:

    Sorry, I lied. McConnell only spent $5 million trying to defeat Moore.

    http://www.al.com/news/huntsville/index.ssf/2017/10/senate_leadership_fund_which_b.html

  40. The Original NJ ExPat says:

    ^^^^Isn’t it interesting that it was more than a month ago that McConnell decided they wouldn’t be putting any money toward getting Moore elected once he won the primary? He probably invested the money in “oppo” research paying would-be accusers instead.

  41. Fabius Maximus says:

    Another nugget of joy in the tax plan.

    The current draft of the Senate Tax Reform Bill would tax stock options and RSUs upon vesting. Currently, stock options are taxed upon exercise and RSUs are taxed upon release of the underlying shares.
    http://avc.com/2017/11/dont-tax-options-and-rsus-upon-vesting/

    Such Greatness Gary!

  42. JJ fanboy says:

    Fabius,

    I think they want to tax scholarships too, even if the school gives the scholarship

  43. The Original NJ ExPat says:

    LOL. Suck it puzzy

    Keurig’s CEO apologizes for ‘taking sides’ as conservatives smash its machines to defend Sean Hannity

    http://www.businessinsider.com/keurig-ceo-apologizes-taking-sides-sean-hannity-conflict-2017-11

  44. Bagholder says:

    ‘To a sweeter more beautiful girl I could not say ‘Merry Christmas.’ Christmas 1977. Love, Roy Moore, D.A.’

    It’s getting creepier.

  45. The Great Pumpkin says:

    Cornell University Professor maybe does a better job of explaining why we should pay taxes. I get and have understood this for a long time now, hence my position of not crying about property taxes in nj. I do cry about this tax reform plan because it taxes people with less money more to pay for tax cuts on the extreme wealthy who need the money less than anyone else.

    If you decide to read the entire article, it will explain how those ultra wealthy will not even notice that they are paying more. They will have a better life, as will everyone living in said society.

    “Why do rich people hate taxes?
    Tax revenue is what we use to pay for public goods and services. Everyone agrees, for example, that cars would be of little use without roads and that roads would be of little use without cars. What’s harder is to identify the best mix of the two categories. It’s fairly easy, however, to see that the current mix in the United States is far from optimal, at least from the perspective of wealthy drivers.

    Consider this thought experiment: Which experience would a wealthy car enthusiast prefer — driving a Porsche 911 Turbo (purchase price $150,000) on smooth, well-maintained highways or driving a Ferrari F12 Berlinetta (purchase price $333,000) on roads riddled with foot-deep potholes?

    It’s an easy question. Although some car buffs might quibble, I’ll assume for the sake of argument that the Ferrari would be judged the better car if both could be driven on good roads. But it wouldn’t be much better, since the $150,000 Porsche already has most of the design features that affect performance significantly.

    The economist’s law of diminishing returns operates here with a vengeance. Beyond a certain point, it reminds us, the cost of achieving additional quality improvements rises very steeply. So if the Ferrari enjoys an edge, it’s at most a tiny one. How, then, could anyone argue with a straight face that it would be more pleasing to drive the Ferrari on pothole-ridden roads than to drive the Porsche on well-maintained ones?

    Yet among the super wealthy, the actual quality mix of cars and highways in the United States more closely resembles Ferraris on potholes than Porsches on smooth asphalt. That’s puzzling, since the latter combination could be achieved at much lower total expense.

    If most wealthy drivers would prefer driving a $150,000 Porsche 911 Turbo on well-maintained highways to driving a $333,000 Ferrari Berlinetta on pothole-ridden ones, why do so many wealthy drivers continue to favor lower taxes, even knowing that means further degradation of the nation’s infrastructure?

    This strange position stems from a combination of two cognitive errors. One is the seemingly plausible, but essentially false, belief that higher taxes would make it significantly harder for wealthy people to buy what they want. The other is the tendency for them to underestimate the importance of luck in their own lives. Both errors make it more difficult to perceive and appreciate the possible attractions of high-quality public services financed by higher taxes.“

    https://www.vox.com/2016/4/27/11433650/taxes-rich-people

    No One says:
    November 13, 2017 at 2:13 pm
    My suspicion is that Pumpy’s wife is somehow in the education/government biz. Would explain where he gets his “high taxes are deserved for quality towns” and “more spending = better quality of life”. And he gets upset at claims government pension promises aren’t sacrosanct. I don’t know where he gets his “keep colored people out of my town and together where they belong” opinions. Maybe from grammy.

  46. The Great Pumpkin says:

    That’s one of the best articles I have ever read on the importance of taxes in our society and why the ultra rich go against their own interest when they lower their tax bill at the expense of education and infrastructure. It’s pure madness to take the position that they should be paying even less in taxes as our society whithers away due to not enough tax revenue.

  47. The Great Pumpkin says:

    Are you kidding me? Yup, looks like party politics at play. Everyone trying to position themselves in pyramid of power. This guy prob plays for team Norcross and is positioning for a battle with Murphy and his team that he is putting together. Hope Murphy takes them all out!

    http://www.nj.com/politics/index.ssf/2017/11/a_snag_for_legal_pot_in_nj_new_assembly_speaker_wo.html

  48. chicagofinance says:

    CPA or tax preparer?

    Jay says:
    November 13, 2017 at 11:13 am
    Can anyone recommend a CPA in Monmouth county?

  49. dentss dunnigan says:

    CPA ..Maldjlan & Citta ….Peter Maldjlan ….http://www.mccoadvisors.com/

  50. The Great Pumpkin says:

    Yup, I was right. Craiggy is in Norcross’s back pocket just like Sweeney. Christie was also in Norcross’s back pocket. Glad Murphy is providing the rest of the state the voice it deserves.

    “Coughlin’s rise also brings an end to an intra-Democratic Party war over the speakership.

    Prieto, a Hudson County Democrat who held the speakership for four years, was seeking a third term.

    But he had alienated many top Democrats over the last year. And a powerful block of Democratic south Jersey lawmakers aligned with power broker George Norcross III joined forces with central Jersey legislators to push Coughlin as an alternative.“

  51. The Original NJ ExPat says:

    Pumps – Why don’t you get your brother to start posting here? I have some questions for your Polish twin about your upbringing and took it worse from your Dad before he left.

  52. The Original NJ ExPat says:

    ^^^who took it worse. Isn’t it funny how your brother graduated HS and he’s a plumber now, but you…

  53. The Original NJ ExPat says:

    I figured it out. Nursery school, elementary school, and toilet training…in that order.

    Hahahahahahahahahahaha

    The Great Pumpkin says:
    September 12, 2017 at 3:09 pm

    Expat, I hold three degrees.

  54. The Original NJ ExPat says:

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    🎃 ………………………………………………………🎃
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    🎃……….Awarded to Pumpkin………….🎃
    🎃……….By Pumpkin…………………………🎃
    🎃……….Awarded this fine day…………🎃
    🎃……….in my own mind…………………..🎃
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  55. Phoenix says:

    Constitutioal convention 2017. Should be interesting if they pull it off..

  56. The Great Pumpkin says:

    Wrote about this issue at 5:37 and like clockwork, this comes out.

    “Don’t cut our taxes, 400 Americans urge Congress to instead invest in roads and education”

    More than 400 millionaires tell Congress: Don’t cut our taxes – The Washington Post

  57. The Original NJ ExPat says:

    🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃
    🎃 ………………………………………………………🎃
    🎃……….Masters in Baiting…………..🎃
    🎃……….Awarded to Pumpkin………….🎃
    🎃……….By Pumpkin…………………………🎃
    🎃……….Awarded this fine day…………🎃
    🎃……….in my own mind…………………..🎃
    🎃 ………………………………………………………🎃
    🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃

  58. The Great Pumpkin says:

    Expat, it’s the truth. How are we giving out tax cuts to billionaires when the infrastructure is hurting in most areas of the country from lack of investment since the 80’s.

  59. The Original NJ ExPat says:

    🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃
    🎃 ………………………………………………………🎃
    🎃……Certificate of Pud Pulling………..🎃
    🎃……….Awarded to Pumpkin………….🎃
    🎃……….By Pumpkin…………………………🎃
    🎃……….Awarded this fine day…………🎃
    🎃……….in my own mind…………………..🎃
    🎃 ………………………………………………………🎃
    🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃🎃

  60. The Great Pumpkin says:

    EU countries agree to create a European mega-army – Business Insider
    https://apple.news/AoPWH1fSoQ7G-TFzkvG5iyQ

  61. The Great Pumpkin says:

    “How a small group of self-made experts came to advise Congress on disinformation campaigns is a testament to just how long tech companies have failed to find a solution to the problem. For years, the informal group — about a dozen or so people — have meticulously logged data and published reports on how easy it was to manipulate social media platforms.

    In 2016, they monitored thousands of Twitter accounts that suddenly started using bots, or automated accounts, to spread salacious stories about the Clinton family. They watched as multiple Facebook pages, appearing out of nowhere, organized to simultaneously create anti-immigrant events. Nearly all of those watching were hobbyists, logging countless hours outside their day jobs.“

    https://mobile.nytimes.com/2017/11/12/technology/social-media-disinformation.html?_r=0&referer=http://m.facebook.com

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