No Mortgage Interest Deduction for Big Houses?

Real Estate Agent with Real Living HER

I read an article on yesterday that Rep. John D. Dingell (D-Mich), a 15-term veteran at the helm of the House Energy and Commerce Committee is drafting "carbon tax" legislation that would deny owners their mortgage writeoffs.

The idea behind this is that big houses consume outsized amounts of energy for electricity, heating, air conditioning and construction materials.  They also state that subdivisions of new houses contribute to greenhouse emissions by stimulating far-flung subdivisions, urban sprawl, long commute times and traffic congestion.

Part of Dingell's proposal is to remove the mortgage interest deduction on 'McMansions,' over 3,000 square feet.

Bill Killmer, an advocacy official for the National Association of Home Builders, says penalizing square footage, rather than actual energy usage, is "wrongheaded".

Top staff members of the National Association of Realtors challenged the idea that all houses above 3,000 square feet constitute "McMansions," and warned that withdrawing tax benefits would lead to property value declines across the market spectrum. (As if we don't have enough areas of the country with declining property values already).

What do you think about this plan?

Jeff Tumbarello
Steelbridge Realty LLC - North Fort Myers, FL

its a form of socialism, why should it matter if my house is 250 Sqft or 50,0000

I am tired of this lets penalize people who have been sucesfull in this country

Aug 29, 2007 05:29 AM