The ability to deduct mortgage interest each year on federal taxes has been a powerful incentive for homeowners for nearly 100 years. Changing or eliminating the mortgage interest tax deduction (MID) could slow any progress currently being made in a still-fragile national housing market. Yet changing or eliminating the MID is one of the suggestions being discussed by the federal Deficit Reduction Commission as a way to improve the federal budget.
Housing accounts for more than 15 percent of the national gross domestic product. In fact, every home purchased pumps $60,000 into the economy for furniture, home improvements and related items, according to research done by the National Association of Realtors®.
According to that research, homeowners already pay 80 to 90 percent of federal individual income taxes. Relying on these taxpayers to pick up the slack in the federal budget by taking more money out of their pockets through changing or eliminating the MID would be an unfair burden.
Bringing stability to housing markets should be everyone's priority because it is vital to the economic health of our community and our nation.
Eliminating the MID could erode home prices and values and slow the economic recovery and risk decreasing the personal wealth 75 million Americans hold in their homes.
Changing or eliminating the MID is not the solution. I urge all homeowners to contact their legislators in Washington and ask them to vote against the elimination of the Mortgage Interest tax Deduction.
President, Carbon County Association