The National Association of Home Builders is the latest housing group to announce it plans to fight Congress to preserve mortgage interest deduction, which is expected to become a target of Congress as it looks to control mounting deficits. The National Association of REALTORS® and Mortgage Bankers Association have also been lobbying to protect MID.
There are a couple of sacred cows in the tax code, and the mortgage interest deduction is one of those. Politicians take it on at their own risk, warns J. P. Delmore, the senior federal legislative director for the National Association of Home Builders.
At its recent International Builders Show last week, NAHB outlined a strategy on how it plans to lobby on behalf of mortgage interest deduction, including plans for aggressive media coverage and an emphasis on how removing MID will cause home prices to fall by possibly 15 percent. NAHB also recently launched a Web site, Savemymortgageinterestdeduction.com, to rally public support.
Experts predict tax legislation to advance in Congress either this year or next year. One idea being proposed in some circles is to replace the interest deduction with a 12 percent tax credit.
For the latest news and to learn more about NAR's efforts on MID, visit REALTOR.org.
Source: Housing Industry Readies Mortgage Tax Break Fight, MarketWatch (Jan. 14, 2011)