Ever since Mitt Romey made note in August about the possiblity of the Mortgage Deduction being reduced, the Mortgage Deduction has come a focus of the "tax revenure enhancement" forces in Congress.
With the Fiscal Cliff rapidly approaching(less than 45 days!!), House Republicans and President Obama will be looking for a means to avoid going over the cliff. As is the wonk of political compromise, unseen consequences arise for the expediency required to avoid a crisis. And the the Fiscal Cliff is a CRISIS!!
Thus, you need to be aware that the Mortgage Deduction will come under attack as will many others like Oil Subsidies and like "Corporate Welfare" deductions/loopholes. The basis of the attack will to raise tax revenues without "raising tax rates"....kind of like a bank giving free checking with lots of fees for checks, copies of checks and like...significant cost impact hidden by words like "Free" or "No tax increase" pledges.
You and I may debate for hours if this is the right way or the wrong way to increase federal revenues. Yet, the fact remains the fact. Fiddling with the Mortgage Deduction, at minimum, will:
1. Directly impact the finacial feasibility of home ownership,
2. Remove the incentive to buy a home
3. Reduce home values by up to 25%
4. Cause more homeowners to go under water on their mortgage
5. Reduce home affordability for low income, first time home owners and other buyers with
IF you believe as I do, that the Mortgage Deduction is a value added feature of our tax code, contact your Congress man/woman, Senator, and the President's office. Let them know where you stand.
Perhaps as Congressman Forbe did, your representatives will send a email survey to get your take on this matter.