It's a lot, a mind boggling amount, but the one trillion dollars from the current bill is in addition to the usual budget deficits which continue unabated. It is an extra 1 trillion dollars, rather than working on reducing the national debt.
Time will tell!! But let's use a little logic now. First time buyers already can't afford an SFR with the total amount of interest being deductible. (what happens when it caps out at $500,000) It will also put an de incentive to upgrading your resident. (you know when you sell your $500,000 house and buy an $800,000 house) You won't be able to deduct $300,000 of the mortgage interest on your new loan. So what happens to those $750,000 or more homes??? They go down in value and pushes everything else down with it. So who is buying these houses now??? Simple answer, "Investor's." But with a likely drop in housing prices. Real Estate in California won't look like such a good investment anymore. Where will these investors now put their money???? Let's see, what investment looks even more attractive now with lower corporate tax's and de regulation. Even you Steelhead should now the answer to this!!!! THE STOCK MARKET!!!! DUH!!!!!! Watch money move away from Real Estate and into the Stock Market!!! Putting those 2 things together and not being able to deduct SALT Tax's. You will see a drop in housing prices predicted by the experts. Thinking of selling before the prices get soft???? Give me a shout!!! lol
Last edited by etucker1959; 12-05-2017 at 10:01 PM.
How many people outside of their work supplied 401K that make under $75K annually actually own stocks? Any stock market gains won't help the lower income people at all. It has been proven that the money never ever ever 'trickles down'. They did not get to be billionaires by giving other people their money. All it's doing is creating an even bigger gap in the wealth distribution, but I guess some people are fine with the money going to billionaires and not to people that need help. I think they believe these billionaires actually give a damn about them. SMDH
We have stocks because I inherited some from my parents. We sold the oil stocks and stuff I didn't like such as McDonalds, etc. and bought a bunch of "green" mutual funds (solar energy, wind farms, organic food, etc.). Well, the other day we needed to put some money into our main bank account, so we went to the place with the stocks to withdraw some cash. Meanwhile, the financial advisor wanted to talk to us. He said that my stocks were doing even better than the market as a whole, for one thing, so we must be doing something right, and that's even with this anti-environment administration. Then he suggested selling a bit of the mutual fund and buying some of one particular stock, and I said okay. He said specifically, that the tax scam tax plan will NOT help the economy, but stock investors (i.e. rich people) are pleased with the corporate tax cut and will boost the stock market for a little while, after which even the lower corporate tax rates won't further help the stock market. He said it is a temporary boost. So basically, the financial advisor confirmed what you said, Eric and Brent.
What you said about why house prices are likely to fall makes sense too, Eric. ;)