CAN THE REAL ESTATE INDUSTRY AFFORD TO LOSE THE MORTGAGE INTEREST DEDUCTION?
President's Plan May Cut The Mortgage Interest Deduction
I just received this release from the NJAR Week in Review. There is already talk of bumping the tax rate up to 39% for people in this income bracket, and now they want to take away one of the only deductions that a W2/Salaried person has??? How is this fair? I know for some 250k is a huge number... But in certain areas of the country it is a respectable, but hardly "Rich People Money" Income.For example, if you make $250,000 in income and you fall into the new 39% tax bracket you will be paying $97,500 in Federal Taxes and your house would not be something that can be written off?
This is something we should all be screaming about. It effects our livelihoods. The goal is to improve the housing market to help the economy grow: This proposal is certainly NOT going to help the housing market in any way.
Here is the news release I received earlier:
The NATIONAL ASSOCIATION OF REALTORS®(NAR) and NJAR® are opposed to the federal budget proposal that would reduce the mortgage interest deduction (MID) for thousands of families. As currently drafted, the plan changes the MID by reducing the amount of mortgage detuctability for families earning over $250,000. According to NAR's analysis, changing the MID will not only negatively impact the 2 percent of families who own homes targeted by the proposal, but also will impact home prices and values across the board. NJAR®Executive Vice President Jarrod Grasso, RCE said in a statement, "In a high cost state like ours, reducing the amount of mortgage interest a family can deduct from their taxes will have a devastating impact on housing recovery efforts and limit many people's ability to achieve the dream of homeownership."
Read NJAR®'s full press release. View more information on NAR's plan of action and read NAR's press release.
There is a reason for RPAC! We need to fight this as an industry.
Rob
Robert Rauf
www.RobertRaufHomeLoans.com or my blog: http://activerain.com/blogs/rrauf
(732)223-1630 x102
Real Estate Mortgage Network
NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey
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