Home Mortgage Deduction May Be Gone Upon Debt Ceiling Vote: Uncle Sam's Ready to Raise Your Taxes (Unofficially)

Each day the debate intensifies in Washington over the debt ceiling. It's obvious a couple things are going to come out of any compromise, and there will be a compromise once the political theater is over. Republicans are going to get spending cuts and Democrats are going to get new taxes. However, many speculate the taxes will be hidden under conditions Republicans demand--no new taxes to get new taxes.

Confused?

Well, it appears deductions and tax loopholes will be the target so these Washington Potomac Kool-aid drinking politicians can get into your pocket without saying they created new taxes to pay down the deficit. Rumor have been circulating for months now Obama and the Democrats want to get rid of the home mortgage deduction. Which, truth be told is one of the only real advantages to owning a home. In the current economy, thanks to both sides of the political spectrum, home ownership isn't as rewarding as it used to be as  government entitlement programs forced banks to lend money to those who didn't qualify, and of course the banks took it too far seeing the huge commission checks and mortgage sales that equaled instant gratification knowing the government would be around to bail them out on down the road when the Yellow Brick Road turned to mud.

Bruce Krasting breaks down just how easy it would be for the United States government to turn a quick trillion in revenue by killing the home mortgage deduction and other individual deductions you take on your taxes every year. So say goodbye to your IRS refund check, and you better adjust your withholding, because Uncle Sam is about to launch some angry tax increases without ever voting to increase a percentage of your income taxes.