Want people to spend again? Make interest deductible again..

[SoCalDem]

ALL interest paid.. make it deductible from TAX OWED.. and make it an option for people who do NOT itemize..

One caveat? For people whose adjusted gross is under $250K..

[DJ13]

1. Not just deductible, but a rebate on the interest paid

Deductions do no good for the lower classes who pay interest up the ass, but dont pay enough federal income tax to be worth anything.

Its all a cash outlay for them with no hope of recovery under a deduction.

[SoCalDem]

2. Yes.. for non-filers..they should have a form for them to get it back

:)

[Oregone]

3. Pay back interest?

Now have the government subsidize terrible consumer spending habits? You gotta be kidding me. Why should I shell out tax money for the idiots down the street that keep buying brand new cars with high interest auto loans (I recognize that I should only buy a car I can afford with cash!)?

Yeah, that'll just encourage unsustainable consumerism. Why all the blame/focus on the people anyway? People not willing to spend is a symptom of this insane crisis, not a cause.

[SoCalDem]

4. Until Reagan, interest WAS deductible..

as was a renter's deduction..

[Oregone]

5. Deduction vs Rebate...hmmm.

There is a difference.

[SoCalDem]

6. Probably most people who don't file, also don't have credit cards

any many may not qualify for loans, so maybe the rebate thing would not amount to much :)

[GoesTo11]

7. We need to spend more in this country.

Not so much.

If you want to help people who are struggling, some redistribution makes sense. But making it contingent on owing money for consumer debt is silly. We need less not more of that.

[SoCalDem]

8. Like it or not, it's the way it is right now.. I would LOVE for it to all change,

but I am thinking INSTEAD of the bailouts to banks & insvestment companies, and instead of just throwing money at people who don't spend it, this would address..and easily.. the process of getting money into the hands of people who WOULD spend it..

a 7 year car loan with deductible interest would mean that more people would buy cars..

I actually favor the closing of ALL credit card accounts..and making people re-apply..with stringent qualifications, and limited credit limits..