Property Values and Property Rights at Stake - Mortgage Interest Tax Deduction Should be Retained

 

President Obama's fiscal commission group recent proposal to reduce the federal budget deficit by reducing or eliminating tax credits, deductions and incentives, is misguided.  The primary financial CHALLENGE OF U.S. GOVERNMENT IS about GOVERNMENT DEBT AND DEFICIT SPENDING, size and scope of the government itself.

This Commission report proposed that Congress change eliminate in part the MORTGAGE INTEREST TAX DEDUCTION.  

• Say What?  The MORTGAGE INTEREST TAX DEDUCTION is valuable for the economy, the American people and should be retained. 

The MORTGAGE INTEREST TAX DEDUCTION was introduced along with the income tax in 1913 and has since then been important for U.S. home buyers and owners. 

• Any reducing or eliminating the MORTGAGE INTEREST TAX DEDUCTION would hurt property values and owner property rights. 

The California Association of REALTORs and the National Association of REALTORs strongly oppose this proposal to change MID. 

• Deductibility of interest paid on mortgages is a powerful incentive for home ownership and has been one of simple provisions in the federal tax code for more than 80 years.
• Proposal from the Deficit Reduction Commission would negatively impact housing market, further erode opportunities for home ownership across the country, and would contribute to further price declines and diminished property values and equity.

We should defend the MORTGAGE INTEREST DEDUCTION from any cuts or reduction. 

• As the housing market continues to recover from financial crisis, any change that reduces the ability of the market to heal is misguided and should be rejected. 
• Proposal to reduce MID would negatively impact the housing market, further erode opportunities for home ownership across the country, and contribute to further price declines and diminished equity for homeowners.

California Association of REALTORs is working with National Association of REALTORs to make sure that the real estate industry's opposition to this proposal is heard and understood.

• America's economy health and vitality depends upon people wanting to buy and own homes.
• Housing markets health depend upon buyer confidence in value of home ownership.
• Jobs for Americans depend upon health of the housing markets. 
• Owners and buyers want and expect to retain the U.S. income tax deduction for home mortgage interest

Real estate professionals and REALTORs® opposition to such change to the MORTGAGE INTEREST TAX DEDUCTION is at least in part to protect property values. 

• The Budget Deficit Panel Proposal to eliminate the home mortgage income tax deduction would hurt home values and private property rights.

Any proposal to change or eliminate the MORTGAGE INTEREST TAX DEDUCTION is nonsense and should be rejected.  

• This commission should focus on reducing size of government and cut the Federal workforce, while lowering U.S. income tax rates. 

Recent talk and news about possible eliminating the MORTGAGE INTEREST TAX DEDUCTION has had an adverse impact on prospective buyers, and these folks are more worried now than before.

• Home prices are based on value of the property and affordability, which includes deductibility of mortgage interest.  If there is change to MORTGAGE INTEREST TAX DEDUCTION, properties would become less affordable.

The National Association of REALTORs® strongly opposes the proposal to eliminate mortgage interest deduction.  

• "Housing is the engine that drives the economy, and to even mention reducing the tax benefits of homeownership could endanger property values. Home prices, particularly in high cost areas, could decline 15 percent if recommendations to convert the mortgage interest deduction to a tax credit are implemented," said Lawrence Yun of REALTOR®.org.

If government changes or eliminates this MORTGAGE INTEREST TAX DEDUCTION as suggested, expect this to happen:

• Fewer people will buy homes. 
• Home prices will go down until new market balance price level is reached. 
• Prospective home buyers will anticipate this tax change and be even more nervous and stay on the sidelines. 
• Buyer reluctance will hurt the economy, home builders, real estate professionals, REALTORs®, mortgage brokers, construction workers, and property owners. 
• State and county governments will lose revenue from flattening property tax rolls.
• California and other states will reduce funding for schools, counties, and cities further.  

Government must retain the MORTGAGE INTEREST TAX DEDUCTION, which is essential for our economy and to stabilize property values.

Home buying and ownership are keys for our economy recovery, and the MORTGAGE INTEREST TAX DEDUCTION is central to that. 

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Harrison K. Long - Business Solutions and Advisory - REALTOR® and broker associate, Coldwell Banker Residential Brokerage - 949-854-7747 (phone)  -  CA DRE 01410855 - ExploreProperties@gmail.com (email)

"Helping People, Moving Forward, Developing Relationships and Protecting Property Values"  - We list and sell homes and properties at Orange County, California. Thanks for contacting us with your ideas and questions about protecting the home mortgage interest income tax deduction and properties at Orange County.