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Mortgage Interest Deduction Threatened Again


October 24, 2017tax_reform_call_to_action.jpg

By Lean Parsons, MORe Now Contributor
 
You’ve no doubt heard about the tax reform legislation talk coming out of Washington, DC. Congress is threatening legislation that would reduce critical tax incentives for homeowners, like the Mortgage Interest Deduction and the state and local property tax deductions. These incentives are needed for a strong housing market that creates jobs and builds stable communities.
 
We need tax reform, but not at the expense of homeowners.
 
We need your help to let Congress know what REALTORS® - often the first line to homeowners - have to say about their plans for tax reform. Bottom line: any tax reform must not dilute the current real estate tax provisions vital to the housing market and a strong economy, and REALTORS® reject proposals that repeal or weaken vital incentives that encourage home ownership.
 
NAR has an call to action automated response form we need everyone to sign. It's as easy as entering your name and address, and the system makes sure the right Congressman gets your letter letting them know why these interest and tax deductions are so important. 
 
Homeownership is a treasured part of the American dream. Since its inception, our tax system has recognized the favorable effects of homeownership for families, communities and the economy by incentivizing homebuyers with tax benefits. However, pending tax reform plans threaten to decimate or even wipe out the tax benefits of owning a home for 95 percent of American families. In addition to effectively nullifying the Mortgage Interest Deduction (MID) for all but the top 5 percent, these plans would outright repeal the deduction for property taxes. Ironically, a hollow shell of the MID would stay on the books, allowing proponents of this tax reform to emptily boast that the deduction has been preserved when it absolutely will not be.
In addition to effectively nullifying the Mortgage Interest Deduction (MID) for all but the top 5 percent, these plans would outright repeal the deduction for property taxes.
 
Under any tax reform plan, homeowners - who already pay 83 percent of all federal taxes - must be treated fairly. The tax code historically has encouraged homeownership. Proposals that limit or repeal mortgage interest and property tax deductibility would reverse this course at a time when homeownership is at a 50-year low. Proposals limiting tax incentives for homeownership would cause home values everywhere to plunge. Estimates show that enacting this kind of tax reform could cause home values to fall, in the short run, by more than 10 percent. The drop could be even larger in high-cost areas and it may take years for home values to rebound from such a significant decrease .
 
Please join us and let Congress know you support homeowners and reject plans that would penalize them.
 
Still looking for more info or want to get involved even more? Check out the NAR Tax Reform Portal.
 

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