Fast Fact: The importance of the mortgage interest deduction can’t be ignored. Altering it could make home values fall. Even a 1% drop could cause a $200 billion loss for homeowners.
Life is filled with tough choices and Americans are facing a big one: should we continue to support the dream of home ownership or not? Because of what Congress is doing, that dream is at risk.
The mortgage interest deduction (often referred to as MID) has perhaps been the single most important tool that’s helped Americans afford to buy their own homes. Yet, Congress seems bent on reducing or eliminating it all together.
How Does the Mortgage Interest Deduction Help?
The MID makes the American dream of owning a home more affordable because it essentially lowers the amount of income tax homeowners pay. Making home ownership affordable helps keep all of our home values and communities on solid footing.
Who Uses the Mortgage Interest Deduction?
It’s a myth that only the rich use the deduction. In fact, over 60% of Americans who use the MID earn less than $100,000. And most of them are younger, middle class families just getting started. About 70% of all homeowners count on the deduction to help make their homes more affordable.
The MID saves these homeowners an average of $12,000. That’s hard-earned money to build a nest egg, pay for college, and save for retirement. Considering that homeowners pay the bulk of all income tax – 80%! – this deduction deserves our support.
Home values are finally increasing; let’s not put home values at risk again. Past changes to tax policies have resulted in drops in home values of as much as 30%, slamming the door to recovery.Even a mere 1% drop in home values could result in a $200 billion loss for American households.
So why would Congress consider reducing or eliminating the MID? It makes no economic sense.
Tell Congress ‘Hands Off’ the mortgage interest deduction by signing the petition at protectmyhometaxdeductions.com.
Or e-mail your questions to firstname.lastname@example.org.