Posted: Apr 29, 2005 By: Jerry Schwegman

Subject: Home Ownership Inequity

Comment: 4/29/2005
Numerous inequities exist with individual taxation but the most obvious is the mortgage interest and real estate and property tax deductions that open up a 'can of worms' for all the other itemized deductions.
Without going into all the specifics here, these deductions generally allow interest deduction on $1,100,000 debt financed for home ownership on primary and secondary (vacation) homes that includes boats, motor homes, etc with cooking and toilet facilities. (Remember no limitations exist for real estate and property taxes on these facilities).
Since the average priced home in the US is under $200,000, the average taxpayer is forced to basically subsidize the taxpayer living in these upper bracket homes and using these pleasure crafts. Needless to say, the renter is totally ignored.
Nothing wrong with home ownership but owners of these homes and crafts need to foot their own bills for their extravagance.
Obviously I could write volumes on this and other specific inequities in both individual and corporate taxes and their 'fixes' but space and time doesn't permit my doing so at this time. Hopefully my brief comments open your discussion in moving to a more equitable tax treatment of US citizens.
Thanks for allowing me to voice my comments. Jerry Schwegman