Mortgage Interest Deduction Debated In Congress
The mortgage interest deduction, one of the biggest tax benefits to homeowners, may be tossed off the fiscal cliff if Congress gets their way.
Congress, as part of negotiations on avoiding the “Fiscal Cliff,” has made direct references to “closing loopholes” and “limiting deductions” as a way to raise revenues. No doubt that Congress clearly sees the mortgage interest deduction as an easy target for on its list of revenue raisers.
Many in the real estate world think that removing the interest deduction would deal a blow to the recovering real estate market and the future real estate market. Many officials point to numbers saying that only the upper class benefits from the mortgage interest deduction. However others claim that losing the mortgage interest deduction will disproportionately affect the middle class because a larger proportion of the middle class takes the deduction. In California 89% of those who took the mortgage interest deduction earned less than $200,000. Losing the deduction would cost the average California taxpayer over $3,900.
Call Congress If You Want The Mortgage Interest Deduction To Remain
Homeowners or potential homeowners who wish to be proactive should call their local Congressperson. You may reach Congress by calling 202-224-3121. Monday-Friday from 9 a.m. – 6 p.m., Eastern Time. The Capitol switchboard operator can help callers identify their member of Congress and connect them.
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