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Could tax write offs in mortgage principal save our economy?

Sep 10, 2011
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I own a business (fairly successful) and its a constant battle to figure out how to spend money I of course want to grow the company but even with a growth plan in place I generally need to buy stuff I didn't really want like computers or marketing displays to store for the future... or inventory (not so much in my business but for everyone else out there inventory is probably #1).

So what I'm getting at is I would rather pay off my house, but because I can't write it off I refuse to increase my income in most years. The main reason I purchased a house was for a deduction so I need to ride the interest train until I have a slow year and I can show more income, in my book I have an acceptable income to tax ratio (generally I need to be no more than the 28% ratio (married filing jointly), I do my best to be in 25%.

So with that said I started thinking of the overall applications to a deductible principal and here is pros and cons.

1. Banks would probably no longer need governmental assistance
2. Americans would put their money in America vs products made in china (my office furniture or computers for example).
3. The people could really start affording their home, my mortgage is affordable but not low, if I could pay it off faster I would pay less to interest (nothingness) and the chances of a foreclosure or short sale are TINY.
4. The reduction of foreclosure or short sale would be far lower because more money has been invested into your home, I would walk away from my home and honestly not care I don't have a lot in it. many "BAD" loans were those that were 0% down, or 3%, or even 5%... all something people could walk away from.

In a big way this could be tax evasion, you could stick the money in, then the following year pull it out with HELOC. I would be 100% fine if stipulations were made to ensure this does not happen, such as principal payments must be made with this type of form and helocs are exempt from that type of payment ... I don't know something along those lines.

So here's my question after my novel of an explanation... What am I missing? Where are the rest of the pros or cons? I feel like its great but I love my ideas having holes shot through them so I can stop thinking they are great and be frustrated that they aren't happening.


Senior Member
Sep 9, 2011
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Ok so we take money from the taxpayers and give it to people who irresponsibly purchased a home beyond thier means so we can continue to prop up the buble on housing values.

In the mean time responsable people to bought within their means, the savers, and the payers, and the people that dont own a home well they just get the middle finger.

This is a very silly idea. By silly I mean stupid.

The only way the economy will get better is if we allow the market to find its controls. Greedy banks will go out of business, greedy investors who thought 12% APY was a smart move will lose money, degenerate consumers living in a fantasy will find reality in forclosure, and housing prices will fall to a level that is once agian affordable for the majority of american citizens. The debt must be cleared.
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