Landmines in the Republican War on the Middle Class: Home Equity Loan Interest No Longer Deductible.

[NNadir]

My accountant sent out a notice that if you have a home equity type loan on your home, you will no longer be able to deduct your interest.

The money raised on the backs of the middle class in this particular example will go into a slush fund for the Trumps, the Kushners, the Wynns, the people who own Paul Ryan and Mitch McConnel and other people who couldn't care less about how you, for one example, put your kids through college.

If you're in this situation, you're going to have to pay your bank to refinance.

It's a word of warning. It could cost you tens of thousands of dollars if you're in this situation.

[Fred Sanders]

1. I got no problem with it. What do well off homeowners usually do with the low interest loans?

And why should all taxpayers subsidize these private loans?

The more wealthy you are in terms of home wealth AND the ability to make payments, the more you no longer benefit. Plus the more wealthy are in higher tax brackets and got more benefit.

Not sure how tens of thousands of dollars are at stake unless you are extremely wealthy with a huge home equity loan.

[DBoon]

5. Tuition at a state college is easily tens of thousands

many of these loans pay for college educations that 50 years ago were publicly subsidized

[Fred Sanders]

7. Paying for tens of thousands of dollars of anything with savings using interest paid deductions

means a huge loan, which was my point.

Example: home equity loan @5% on 1 million is interest paid of 50,000 a year, if deducted from income at higher income tax rate of 33% would be 17,000 saving a year now lost. Less if in lower income brackets, more if higher.

You need to be wealthy to be in that kind of savings range.

[sinkingfeeling]

6. Thanks. I have no mortgage, but have a large home equity loan that

paid for the restoration of my 1858 house.

[NNadir]

8. That depends on what you consider "wealthy."

I don't take vacations; my cars are old; I have two kids in college; both having earned significant scholarships because of their hard work, but both assuming debt, my home is need of repairs.

My typical workweek involves spending 10 hours commuting, 40 hours of engaging in highly technical work interacting with close to 100 people in a week, and then staying up at home or in a library, to solve problems related to my work, which is to bring medication to people who need it. It has been my good fortune to have worked on medications as part of a team of hundreds of thousands of people just like myself that saved human lives. A lot of people who are alive today are alive because of the work we did on AIDS, antibiotics, heart disease, etc.

In past administrations, the middle class, for over half a century was encouraged to own homes. This goes back to the 1950's and since then it's been an important point in the strength of the American economy.

I have been fortunate enough to achieve that, although for many years I rented, usually from real estate conglomerates.

My wife works; I work; my kids work when they can, although we do our best to let them focus on their educations.

I refinanced a few years back because my septic failed. It didn't mean that I was suddenly required to sell my vacation home in the South of France, my yacht, and my wife's favorite jewelry. It meant I had to borrow against equity in my home.

I know I'm more wealthy than say, an inner city family, but I don't feel that as I'm reaching the end of my life, the deal made over half a century of planning my life should be yanked away suddenly, while my kids are in college

Now if you own a home, that doesn't make you one of the Koch brothers, OK?

It's not a "subsidy." It's a long term cultural contract between the government and its citizens that was suddenly torn up to make the ultrawealthy more ultrawealthy. The middle class, working people trying to provide for their kids future are being hurt to pay off Paul Ryan's owners.

I'm sure you live in a sackcloth under a Freeway Bridge, and yes, since you do, I personally believe the government should help you. I believe the government should provide for the education of the young people on whom the future depends.

My point is that Ryan, McConnell and Trump despise the middle class, the class of people who get things done in this country; who make and build its economy.

Sorry that you're offended that I own my (mortgaged) home.

[Fred Sanders]

9. Thank you for your explanation. I appreciate that. If I may ask, have you estimated your net

loss of disposable income for 2018 tax year by loss of your deduction?

I have a 100,000 line of credit @4%. Probably too high for the home value, but my coop is like that. 4000/ year in interest.

At my 25 % tax rate a 4K deduction nets me 1000 a year. I do not like it but I can pay it.

It is a sliding scale of hurt for folks, the more wealthy the more hurt is my point. The middle class will be hurt but in a middle class way...how will this even be known to the poor?

I do not agree that Ryan hates the middle class, he hates anyone below his arbitrary line of "moochers" plus he is a well closeted racist and power hungry mad.

P.S. Social media and comment boards are excellent mediums for being misunderstood.

[Fred Sanders]

13. Seriously, try a cogent argument...like mine.

[uponit7771]

14. WOW !!! Total misrepresentation of what the middle class as been doing with equity

... in their homes.

[Wellstone ruled]

2. Ton's of Older Rapid Trumper's

are living off their HELC's and Reverse Mortgages. These Rethugs f-ed over their own voters. Had one of my rapid mouthed neighbors bitching about this the other day. Smiled and reminded both of them,you Guy's were Union Members back in the day,and now you voted for these suckers,get use to it.

Talk about a mouth full of sputtering. He he. Yup,same people who want their Country back.

[4139]

3. Can deduct interest paid in 2017, but not the future

[DBoon]

4. Home equity is what Americans have instead of social services

You get cancer and your insurance won't cover the expensive treatment? You borrow against your equity

Your kids going to college? Home equity loan

Your retirement? Your equity

In any civilized first word country, these would all be publicly funded services. In the USA, the middle class uses home equity.

[malaise]

10. Dems need to produce an ad on this issue as effective as this one

[NNadir]

11. It will eventually get through to people, but ads like this will help. n/t.