Builders Support Mortgage Interest Deduction

 

House Resolution 25 acknowledged the importance of homeownership to individual households, the economy and the nation, according to NAHB chairman Bob Nielsen, a home builder from Reno, Nev. The resolution also stated that the mortgage interest deduction may well be the most important component of housing-related tax policy in America today and should not be further restricted.
Courtesy of NAHB

National Association of Home Builders urged members of the House of Representatives to show their support for homeownership and the mortgage interest deduction by co-sponsoring House Resolution 25.

“The mortgage interest deduction has been a cornerstone of the nation's housing policy for almost a century, and it is vital to homeownership and healthy housing markets,” said NAHB chairman Bob Nielsen. “NAHB commends Rep. Gary G. Miller (R-Calif.), who introduced the resolution, and the more than 40 co-sponsors for their commitment to homeownership and support for the deduction.”

Eliminating or restricting the mortgage interest deduction would erase the emerging stability in the nation's housing markets, increase the cost of homeownership, make the tax code less progressive and essentially raise taxes on the middle class. Ultimately, it would put more home owners underwater, fuel more foreclosures and impede job creation in the housing sector, where unemployment is about twice the national rate.

Additionally, removing or scaling back the mortgage interest deduction would shrink the local tax base of many communities, prompting cash-strapped state and local governments to cut jobs and essential services or raise taxes.

"The nation's home builders strongly believe that Congress should not tamper with the mortgage interest deduction. Members of the House of Representatives should demonstrate their belief in the value of homeownership and co-sponsor this important resolution," Nielsen said.

– Courtesy of NAHB