Debating the Mortgage Interest Deduction
According to the National Association of Realtors, witnesses came before the Senate Finance Committee to discuss the elimination or alteration of the mortgage interest deduction. The experts were in complete agreement that now is not the time to make changes to the mortgage interest deduction. The reality is that eliminating the tax deductions for home mortgage loans would crush the already ailing housing sector.
NAR is pleased that a range of witnesses testifying at the committee's hearing on tax incentives for homeownership reinforced the message Realtors® have been delivering to Washington: do no harm. "As the leading advocate for housing and homeownership issues, NAR firmly believes that the mortgage interest deduction is vital to the stability of the American housing market and economy. "While progress has been made recently in bringing stability to the housing market, it is not recovering at the rate it should be and is far too fragile to sustain any tax increases.
Congress already allowed loan limits of FHA home loans to expire causing many homeowners in high cost regions to lose government refinancing opportunities. Hopefully the government will resist the temptation of raising taxes on America's homeowners by changing the tax rules that apply to homeownership now or in the future will further stall the housing recovery and critically erode home values. "Owning a home is a long-standing and abiding fundamental American value because it benefits individuals and families, strengthens communities, and is integral to the nation's economy. It is imperative that Congress preserve the mortgage interest deduction and that the nation's 75 million home owners continue to receive this important tax benefit, which helps primarily middle- and lower income families. "NAR will remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest." Read the original NAR article.
