Every time you watch the news, open your homepage on the computer or read a newspaper, we're told home sales are declining and that last month was even worse than the previous month which was the worse in thirty-odd years. There is still no end to falling prices and even amazing rates, like 5% mortgages are not getting people to sign on the dotted line. Then on Thursday, President Barack Obama announces in his proposed budget, that the most sacred of tax deductions, (the mortgage interest deduction) will be reduced for certain homeowners.
The timing of this proposal couldn't be worse. I believe we need every incentive available for people to make a home purchase. So, Joe Jones, down the block, is making $209,000 a year and wants to purchase a house, thereby supporting the economy, the real estate industry and the construction industry and you're going to penalize him by allowing him a smaller deduction on his taxes? We need as many people buying homes as possible. If it takes incentives, LOWER tax rates, or one-percent loans (with no adjustable rates to go up or balloon payments) or prices to finally bottom-out, so be it. Let's not penalize Joe Jones for being "rich" (and when did that become a dirty word?!?).
I realize that President Obama's proposal must pass Congress and even with an approval rating hovering about 12%, I hope cooler heads in Washington will prevail and the mortgage interest reduction remains as is.
And don't even get me started about lowering the deductions for charitable contributions!