Repeal Of The Mortgage Interest Deduction A Bad Idea

Dated: June 11 2013

Views: 3699

According to Realtor Magazine (May/June 2013 Issue) and the National Association of Realtors, home owners, regardless of individual wealth and income levels have benefited from the Mortgage Interest Deduction. This deduction has come under fire lately, but the following statistics and facts will show that it would be a bad idea to repeal it!

An April 2013 Hudson Institute Study which analyzed individual income tax returns in the year 2007 found that the greatest share of the mortgage interest deduction lies not with the super rich but with the middle class. More than half of the this deduction is claimed by households with incomes between $50,000 and $75,000. The top 5% of taxpayers account  for less than 20% of the deduction. The study also found that even in the lower half of income distribution, taxpayers benefit more from the mortgage interest deduction than from the other allowed deductions.
The study also showed that more than half of all home equity is held by the middle and lower income households. To repeal the mortgage interest deduction would yank the safety net out from under millions of U.S households. While housing has always been a cornerstone of our economy, a key driver of economic development and job creation, it is also the foundation of strong families and healthy communities.
This summer the debate will continue in Washington. Tell your elected representatives to leave the mortgage interest deduction alone and in place. Doing so will be to your benefit as well as to the nations'  benefit.
Blog author image

David McKay

I have been with Exit West Realty since 2010 and prior to that have had 14 years of sales experience. I have a BBA and an MBA from the University of Texas at El Paso and have lived in El Paso all my l....

Latest Blog Posts

Tax Season Is Right Around The Corner Did You Sell A Home This Last Year

5 Sweet Tax Deductions When Selling a Home: Did You Take Them All?By Margaret Heidenry | Feb 19, 2021 Feverpitched / Getty ImagesYou may be wondering if there are tax deductions when

Read More

Can I Buy Or Sell A Home Without A Real Estate Agent

Today’s real estate market is one of the fastest-moving in recent memory. With record-low inventory in many market segments, we’re seeing multiple offers—and sometimes even bidding wars

Read More

Will The Housing Market Bloom This Spring

Will the Housing Market Bloom This Spring?Spring is almost here, and many are wondering what it will bring for the housing market. Even though the pandemic continues on, it’s certain to be very

Read More