In response to talk in Washington of reducing the mortgage interest deduction, the National Association of Home Builders (NAHB) urged House Representatives to co-sposor a resolution in support of the longstanding deduction.
The resolution, H. Res. 25, shows support for the tax deduction, which an estimated 40 million Americans claim each April 15. President Obama’s 2012 budget proposal, released in February, included a provision to reduce the deduction.
“This resolution acknowledges the importance of homeownership to individual households, the economy and the nation,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. The resolution also states that the mortgage interest deduction “may well be the most important component of housing-related tax policy in America today” and should not be further restricted, he said.
“The mortgage interest deduction has been a cornerstone of the nation’s housing policy for almost a century, and it is vital to homeownership and healthy housing markets,” Nielsen added. “NAHB commends Rep. Gary G. Miller (R-Calif.), who introduced the resolution, and the more than 40 co-sponsors for their commitment to homeownership and support for the deduction.”
By an estimate from Congress’ Joint Committee on Taxation, the deduction will save taxpayers roughly $600 billion between 2009 and 2013.
“Eliminating or restricting the mortgage interest deduction would erase the emerging stability in the nation’s housing markets, increase the cost of homeownership, make the tax code less progressive and essentially raise taxes on the middle class. Ultimately, it would put more home owners underwater, fuel more foreclosures and impede job creation in the housing sector, where unemployment is about twice the national rate,” said NAHB.
NAHB has also launched a website devoted to saving the interest deduction: http://savemymortgageinterestdeduction.com/.
To view NAHB’s statements, click here.
Written by Elizabeth Ecker