Policymakers looking to target the mortgage interest deduction in the name of tax reform should think twice before imposing a huge tax increase on millions of middle-class home owners that would sink the housing and economic recovery.

 Cutting the tax benefits associated with owning a home would send shockwaves throughout the economy.  Eliminating or limiting the mortgage interest deduction would further depress home values, raise the tax rate for millions of working families, and reduce consumer spending and confidence.

 A recent New York Times poll found that more than 90 percent of respondents oppose doing away with the mortgage interest deduction.

 The mortgage interest deduction primarily helps younger households and middle-class home owners; 8 percent of the tax benefits go to home owners who earn less than $200,000.  The benefit of a deduction that reduces the net cost of monthly house payments is particularly important to younger home buyers, who typically have less equity and tighter household budgets but must meet the needs of a growing family.

 Restoring the health of the housing industry is a crucial first step in leading the economy to higher ground by creating jobs and increasing the property tax base in communities across the land that support local schools, police and other essential services.

 The path forward is perfectly clear: Congress needs to take actions that will stabilize the housing market – not raise taxes on America’s home owners.

Posted in Uncategorized

Comments are closed.