Friday, November 30, 2012

President Obama and Congress discuss tax measure that would kill housing recovery

With the lack of fortutude by both Congress and the President to address their fiscal households over the past four years, the standard paradigm of wait until the last minute and legislate some draconian budget that will accomplish little, and hurt the majority of Americans, is staring them in the face.  With the proverbial 'fiscal cliff' just one month away from dropoff, the low IQ men and women who represent 310 Americans are putting tax cut issues on the table that would devastate not only the housing recovery, but nearly every homeowner in the country.

On Nov. 29, Congress and the White House began looking at the removal of the mortgage interest deduction for taxpayers who own a home, and believe it could be a low impact measure to save revenues towards cutting the deficit.



Of all the deductions woven into the sprawling U.S. tax code, few have been more fiercely guarded than the enormous tax break that lets homeowners deduct the interest they pay on their mortgages.

But as Congress and the White House negotiate the first major rewrite of tax laws in decades, changing the generations-old mortgage-interest deduction — which costs the government roughly $100 billion a year — has gone from far-off possibility to part of the conversation. - Washington Post

Congress passed the home mortgage interest deduction as a means to help Americans buy affordable housing, and create jobs and economic growth through construction and all the industries tied to home buying.  By removing this long standing deduction, not only would it add an average of $5000 to the tax burden of most homeowners, but it would take away a key selling point for realtors in offering home buying vs renting as an option.


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