Proposed mortgage tax break battle
looms Source:
Informa Research Services
(01/21/2011) Both
the home loan industry and politicians are drawing battle lines ahead of what is
expected to be a large-scale fight over whether consumers can write off their
mortgage interest.
As
part of a renewed Congressional effort to save money, particularly the
Republican-run House of Representatives, lawmakers are mulling whether to
discontinue a program that allows some consumers to deduct the cost of paying
their mortgage from their annual taxes, according to a report from the Arizona
Daily Sun. However, the National Association of Homebuilders (NAHB), fearing
that this could cause a dip in home sales, has begun lobbying in favor of the
keeping the deduction.
"This
is a huge benefit for 35 million taxpayers a year. And the biggest beneficiaries
are middle-class families and younger home buyers," Robert Dietz, who oversees
tax policy and issues for the NAHB, told the newspaper.
Consumers
typically pay hundreds or even thousands a year in interest on their mortgage,
and not being able to deduct those costs from their taxes could cause them a
number of financial problems.
In
the past, lawmakers have considered repealing this deduction, but have been
dissuaded by organizations like the National Association of Realtors (NAR) and
Mortgage Bankers Association (MBA), the report said.
