Mortgage Deduction and a Flat Tax

Hayduke asks

Finally, I’ve been thinking a lot about the home mortgage interest deduction.

What if we just got rid of it?

Total federal spending on housing assistance for poor people (less than $20 billion) is dwarfed in comparison to the amount of tax revenue forgone each year (around $120 billion last I checked) because of these deductions, and that’s to say nothing of the impact it has on home prices and development in general. And it covers houses worth up to $1 million.

Relative to eliminating the mortgage interest deduction.  Hayduke, you sound like Steve Forbes.  I am impressed.  Forbes admits it would drive down the value of homes but “so what?” he asks. The deduction artificially raises the prices of real estate and as a result lowers the prices of alternative investments, like stocks and bonds.

Yet it’s stocks and bonds that people need for their retirements.  I don’t plan to retire on the equity in my house.

Lower housing costs would spur more home buying, less real estate speculation (although I am not sure about that), increase the tax payer base.  People could live closer to work which would help alleviate congestion, the closer people live to work then we may see more business locate to Howard County.

Why won’t it happen?  Follow the money.  Lower home prices means less margin for developers, smaller commission for the Real Estate industry, lower margins for builders, etc.  The industry is a gorilla sitting atop the deduction.

So, do you also support a Flat Tax?  I do.

Elitist Comments

Charlie Feaga in the Baltimore Sun today talking about the Comp-Lite referendum.

“It’s the correct decision. I believe nine out of 10 people did not know what they were signing,” said Charles C. Feaga, a Republican County Council member from western Howard who joined three council Democrats to vote for the Comp Lite bill, which rezoned 38 parcels and made 49 zoning law amendments.

The referendum, Feaga said, represents “zoning by plebiscite,” which he believes is wrong.

Charlie, do you think the voters are so inadequate

Verizon FIOS is WIRED

Today, Verizon’s FIOS service got confirmation it is shaking up the broadband, telecom and cable industries. For the first time Verizon has been named one of “The Wired 40” by Wired magazine.

The people at Wired not only look for “strategic vision, global reach, [and] killer technology” when naming companies to this list, but also “the X-factor – a hunger for new ideas and an impatience to put them into practice.”

They hit the mark when they put Verizon in that category and especially with the comment that Verizon’s fiber “have the cable guys panicked.” and why not.  Verizon is deploying an all new fiber network right to your house.  It screams.

Feel free to visit the magazine’s website and view the article at:

http://www.wired.com/wired/archive/14.07/wired40.html

Get on the bandwagon at http://www.verizonfios.com

I am using the internet and cable TV service.

Internet speeds of 15Mbps / 2Mbps for $34.95 and it is so fast it screams.

TV at $39.95 is awesome.  I get 180 channels and over 40 music channels.  It beats Comcast cable hands down.  Previously I had Comcast expanded basic and my bill was over $50.00 per month (including taxes).  We opted for HDTV too for an additional $10.00 per month.

Since I got the TV service they have added more channels and features (weather and traffic reports at the touch of a button).  I have heard that they are redesigning and improving an already impressive on screen TV guide and search options.

Literally, all the houses on my street, except for one, have switched from COMCAST to VERIZON FIOS and they (like me) are LOVING IT.

Life in Africa

My in-laws have retired a few years ago.

Upon retirement they joined the Peace Corp and were assigned to Romania where they worked in a small city called Zalu.  By all accounts it was a wonderful experience.  Although they were in search of volunteer opportunities that didn’t require such a long term commitment they opted for the Peace Corp. since they couldn’t find anything else.

From the contacts they made in the Peace Corp. they have found a 3 month assignment in Tanzania, Africa.  They are currently working there to assist the government in their AIDS/HIV efforts.

I will post some of their experiences here.  Why?  So we can remember how good we have it here, know of the generous hearts American’s have, and because it is darn interesting.

Kristen Cox for Lt. Governor

The Sun says so

BELIEVE it.

Can’t wait to see the partisan democrats twist on these two names.  It is bound to put off a lot of voters when some of the worst play on the Ehrlich and Cox names are played out.  I hope they go over board.

BTW: I am not inferring that all democrats will stoop so low.  Many would take offence at the name play.  Both parties have members that don’t necessarily exercise the best judgement.

July 4th activities

Celebrate the 4th of July with Chris Merdon and Supporters

July 1, 2006

Laurel Independence Day Parade

Line up at 10:00am at 6th and Montgomery in Historic Laurel

Parade starts at 11:00am

July 4, 2006 Morning

Longfellow 4th of July Parade

Lineup at 9:30am at Longfellow Elementary,5470 Hesperus Dr

Parade starts at 10:00am

River Hill 4th of July Parade

Lineup at 9:00am at Great Star Dr.and Guilford Rd

Parade starts at 10:00am 

July 4, 2006 Afternoon   

Allview 4th of July Parade

Lineup at 11:30am at Atholton Park, 6875 Donleigh Dr

Parade starts at 12:00pm 

July 4, 2006 ALL DAY  

Festival and Fireworks on the Lake 

Come spend some time at the MERDON BOOTH at Lake Kittamaqundi, Wincopin Circle, Columbia

MARK YOUR CALENDARS July 23, 2006 2-5pm  

Our second Family Picnic Located at the NEW Meadowbrook Park in Ellicott City

– Volunteers needed to set-up, cook, sign wave, clean up and have fun!

Join us in these exciting opportunities to come out and show your support as a MERDON VOLUNTEER.  

Please e-mail Meghan Cornely at Meghan@Merdon.org or call 443-812-8401

Comp Lite Referendum Dead

Rumor has it the referendum is dead. 

Update: It is dead

Some memorable quotes and past news on the referendum initiative and zoning in general. 

If you recall, as the Howard County Times reported last year, in addition to other land-use decisions, it contains a rezoning that allows Bethel Korean Presbyterian Church in Ellicott City to build an addition without having to seek community input, a decision that outraged the church’s neighbors and prompted the referendum.  Recently Councilman Ken Ulman proposed zoning reform.

Council member Kenneth Ulman:

First he said this….

“We make decisions all the time that people are unhappy with,” Ulman said. “It’s important to keep perspective on this. This was a church expansion. You would think from some people’s response we’d allowed a row of strip clubs along St. John’s Lane.”

Howard County Times, March 17, 2005

Then he said this….

“I think we’re all frustrated with comprehensive rezoning…It’s easy to criticize; it’s easy to blame, but we think we can make this work better.”

Howard County Times, June 15, 2006

He also said this….

“I think it’s a shame that there are many projects held up because (of the referendum drive) but we’ll have to see how it plays out,” said County Council member Kenneth Ulman, a Columbia Democrat who voted for the bill.

Howard County Times, June 16, 2005

And then he said this…

Ulman said he’s frustrated with the current comprehensive rezoning process, which is why he supports a change that would “notify every citizen,” in “a process to engage every citizen,” and also weave funding for capital projects like roads and schools into the new system.

Baltimore Sun, June 14, 2006

Then their is this article from the Howard County Times.  Landowners seek to scuttle ‘Comp Lite’ referendum.

What would Ken Ulman say if the law suit referenced in the article were to succeed, as I have been informed?  I am sure he would be disappointed that, if the referendum were to be removed from the November ballot, that the opportunity to “engage every citizen” was lost.

A vote for Wallis is a vote for Ulman?

A reader posted the following which I will post here because I think their is some validity to this readers “concerns”.  I certainly think that Wallis would hurt Merdon and help Ulman.  I honestly think an independent without County government experience has an uphill battle. 

I won’t go as far as to claim that their is a Wallis/Ulman deal as the reader speculates, but it raises a very important point?

Will a Wallis campaign put Ulman in the County Executive seat?  Merdon has traditionally done very well in District One among independent voters.  It is a democratic district and he won by large margins twice because he was able to garnish support from democrats and a large proportion of independent voters. 

Ulman won in a very predominant democratic district – altough he still had to run an ugly campaign to beat Joan Lancos (R).

So will Wallis siphon off enough independent votes to help Ulman or do voters know better?  What do you think?  Do you think we would see Steve Wallis in an Ulman administration if Ulman won?

Here is the post:

WSJ on Maryland Politics

Ehrlich to Rise?

Don’t count on a big Democratic year in Maryland.

BY BRENDAN MINITER

Tuesday, June 20, 2006 12:01 a.m.

ANNAPOLIS, Md.–If this is going to be a watershed year for Democrats, there is little sign of it here, in the heart of one of the bluest states in the country. Only four other states handed Sen. John Kerry wider margins of victory two years ago, and registered Democrats outnumber Republicans nearly 2 to 1.

Poll Update

While not scientific the poll I have been running for the next County Executive (which closes on June 30th) currently has Chris Merdon leading.

Merdon 115

Ulman 39

Wallis 42

Honestly, I was a little concerned at first because Mr. Wallis was the early leader.