Quote: Originally Posted by C4M
While that might be true in the US, mortgage interest is not deductible here in Australia. I wish it was (although I also know that if it was, then they'd just take the money off me somewhere else).
C!
Sorry mate! Yeah, Uncle Sam lets us deduct mortgage interest, over here. And you're right, they get that money from you elsewhere. We have a name for the people holding that wallet. They're commonly referred to as "the Middle Class". They keep the government well funded, while the poor keep the government writing checks. The funny part is, some people are actually convinced that the rich have the role in providing jobs for the middle class. The reality of it is though, not many people who are "middle class" will work as gardeners, maids, or butlers.
So the rich basically keep their money by having the middle class pay them rent on their mortgages. And when they (the rich) need more money, they refinance the mortgage and the renter's monthly checks are no longer "income" they have to pay tax on, because that money is going to pay the mortgage interest. Meanwhile, they've got a big wad of tax free cash their renter is financing for them.
