Monday, May 23, 2011

Future of the homeowner tax deduction

Interest tax deductions for homeowners have been around since 1986 when the U.S. tax code was reformed.
The idea was to encourage homeownership and spur the housing and construction markets, among the biggest drivers of the economy.
Eliminating or scaling down the mortgage interest tax deducation has been considered in Congress as a means to rein in the national debt.
Pundits on both side of the aisle have reasons to dislike or applaud the deduction. Opponents call the deductions a tax expenditure that costs the government $120 billion annually. Supporters say cutting it would be the same as another middle class tax increase and further depress the housing market just as it looks for ways to climb out of tha tank.

What do you think?

Here are a few articles on the subject.

-Ralph Bartholdt

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