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A Lawyer’s Tips on Negotiating for Dummies and Congressional Republicans

D Fayette Wrote: Dec 06, 2012 9:54 AM
Romney and Ryan caved on raising taxes on the campaign, by saying they'd close loopholes. However, what they really meant, for the most part, they were going to cap deductions. Mortgage and charitable deductions were two prominent ones mentioned. If you want less of something, you tax it more. Capping mortgage deduction will hurt the housing industry, and capping charitable deductions will hurt charities. Boehner needs to pass a bill to extend current rates for ALL tax brackets, and appropriately fund the Defense Department, then adjourn the House. If the Senate, or the President refuse to pass the bill, it is they that took the country over the fiscal cliff.
wdwrkr Wrote: Dec 06, 2012 12:31 PM
" Capping mortgage deduction will hurt the housing "

Not so. Eliminating the mortgage deduction will reduce home prices, which will entice more buyers, which will restore the housing market. This has been demonstrated in other markets that eliminated these types of artificial supports. Remember, the purpose of the deduction, and other housing market stimulii, is to PREVENT prices from dropping.

The gov't started the housing market mess when it first started meddling many years ago. The gov't has done nothing but cause distortions in the housing market. When the gov't stops meddling, we'll return to a healthy free market.
Rich L. Wrote: Dec 06, 2012 6:18 PM
Wrong, house prices have been declining for 6 years now and if you remove the incentive to write off the mortgage, lower prices won't entice anyone. They will see as a sign that now is not the time to buy and when all the houses that are really in forclosure get officially on the books, the banks will begin to fail and like dominoes, the whole thing collapses.
wdwrkr Wrote: Dec 06, 2012 10:28 PM
"...... the whole thing collapses"

So, gov't subsidies are what sustain the housing market? That, in itself, is THE problem. Gov't subsidies distort the market and mislead people. The subsidies exaggerate natural market swings. A stable housing market will return when the gov't stops meddling.

Housing prices rise/fall even with the subsidies in place. The subsidies do not prevent home values to drop. The subsidies only increase prices above their free market level. Housing prices WILL decline when the subsidies are removed. That is why there is so much opposition to eliminating the mortgage deduction; current homeowners will see their equity decline.
Somewhere, there’s a whiplash lawyer who runs his law office out of a van down by the river who watches the congressional Republicans attempt to negotiate the fiscal cliff crisis and has to turn his head away. John Boehner and his inept coterie of GOP establishment cronies have made every mistake in the book. It’s professionally embarrassing.

Frankly, if these hacks were my associates, they’d be on a street corner with signs reading “Will litigate for food.”

Congress is famously full of lawyers, but what people don’t understand is that it is really full of bad lawyers. Good...