Although I was a homeowner before my thirtieth birthday, I’ve never felt that the mortgage-interest deduction was a particularly good idea. It’s led to higher house prices, decreased economic mobility, and higher levels of debt across the board. The fact that a HELOC is also tax-deductible verges on madness. I could buy a Viper with a HELOC and deduct the interest. Does that seem reasonable to anybody besides, um, Viper fanatics like me?
If you’ve looked through the tax plan then you’ve probably figured out that it amounts to a declaration of war against the State of California. For a couple of decades now, the Golden State has taxed its residents at rates bordering on criminal, and those taxes have been deductible against Federal taxes. California was basically stealing federal tax money for its own purposes. Well, ask anybody who was a pre-teen member of the Branch Davidians, assuming you can find one alive: you never know when Uncle Sam is gonna burn your house down.
The new tax plan is good news for me. I am largely self-employed and I earn a fairly modest income nowadays. I expect it to put the equivalent of a Tudor Black Bay watch back in my pockets every year. And the only way my house will ever be worth $750,000 will be if I put two Aventadors in the garage. Let’s take a look at what I wrote last week and see if I’m ever going to earn those Aventadors through sheer weight-of-pages.
As you’ve no doubt noticed, we are accelerating the pace of contributions here at Riverside Green. This week will feature several guest posts ranging from philosophical wanderings to automotive reviews. Stick around!