Comments on: Can we hope to abolish debt-related tax incentives? http://blogs.reuters.com/felix-salmon/2009/07/14/can-we-hope-to-abolish-debt-related-tax-incentives/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Lord http://blogs.reuters.com/felix-salmon/2009/07/14/can-we-hope-to-abolish-debt-related-tax-incentives/comment-page-1/#comment-4171 Tue, 14 Jul 2009 23:39:12 +0000 http://blogs.reuters.com/felix-salmon/2009/07/14/can-we-hope-to-abolish-debt-related-tax-incentives/#comment-4171 The problem with such tax changes is they only encourage new tax games and in the end what difference does it really make? If you want to raise taxes, there are simpler and more direct means.

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By: Dave http://blogs.reuters.com/felix-salmon/2009/07/14/can-we-hope-to-abolish-debt-related-tax-incentives/comment-page-1/#comment-4160 Tue, 14 Jul 2009 21:00:14 +0000 http://blogs.reuters.com/felix-salmon/2009/07/14/can-we-hope-to-abolish-debt-related-tax-incentives/#comment-4160 Except that if you suddenly divert income streams to debt repayment from consumption, you trigger paradox of thrift armageddon. Krugman would go absolutely mental.

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By: Neal http://blogs.reuters.com/felix-salmon/2009/07/14/can-we-hope-to-abolish-debt-related-tax-incentives/comment-page-1/#comment-4157 Tue, 14 Jul 2009 20:37:25 +0000 http://blogs.reuters.com/felix-salmon/2009/07/14/can-we-hope-to-abolish-debt-related-tax-incentives/#comment-4157 Doesn’t the tax deduction simply make the house more expensive? People on the margins can afford more of a monthly payment and so buy a bigger / more expensive house?

Of course, the banks like it too. Don’t they end up with the money?

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By: jestyn Thirkell-White http://blogs.reuters.com/felix-salmon/2009/07/14/can-we-hope-to-abolish-debt-related-tax-incentives/comment-page-1/#comment-4156 Tue, 14 Jul 2009 20:10:16 +0000 http://blogs.reuters.com/felix-salmon/2009/07/14/can-we-hope-to-abolish-debt-related-tax-incentives/#comment-4156 I thought UK mortgage interest relief was phased out from 1989/90 – wasn’t that what killed the Lawson boom?

It was grandfathered for people who didn’t move house, maybe that was what stopped in 2000.

In any case, although the idea makes sense, the midst of a housing bust might not be the best time to do it?

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