As they search for ways to boost federal revenues, Congressional number-crunchers are encouraging lawmakers to consider drastic changes to the tax benefits homeowners get from their mortgage interest payments.
Yes you heard me right, now they are coming after the home owner's interest deduction.
They complained that the "tax code treats investments in owner occupied housing more favorably than other investments."
The Congressional Budget Office actually recommended changing the deduction to a flat 15% tax credit on the annual interest paid.
Their second proposal puts a ceiling of $500,000 as the limit you can claim a deduction against. Their justification is, that only 54% of homeowners actually get a deduction anyway.
This administration is spending money at a pace never before seen in the history of our country and now it is apparent how they intend to pay for their programs.
Pass a bill like this and you will have money moving away from Real Estate at a pace you could never imagine. New home builders would go out of business over night. The average home owner would lose thousands.
Traditionally, a home is the one tool you could use to actually save money, so to speak. Something like this would cause a DEPRESSION, not a recession. Real Estate has always been and should always be the instrument to create growth and wealth in our economic model.
The CBO even said this proposal would likely reduce home ownership. You think! How about eliminate about 54% of it.
The lunacy continues!!!!
http://www.charlotteobserver.com/home/story/912490.html
http://www.washingtonpost.com/wp-dyn/content/article/2009/08/27/AR2009082704289.html
http://www.bostonherald.com/business/real_estate/view.bg?articleid=1194151
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