Debate Getting Heated on possible Elimination of the Mortgage Interest Deduction

The debate is heating up in DC regarding the possible doing away with the Mortgage Interest Deduction for homeowners.  The Pro side says by doing away with the Mortgage Interest Deduction would create a source of income for reducing the US budget deficit and they feel that the country needs to rethink its favored tax treatment of homeownership.

The other side proclaims that homeowners already pay more than their share of the income tax in the US. Many of the Pro forces are claiming that a major part of the mortgage meltdown is due to the country’s support of homeownership, when in fact it was caused by lax underwriting practices and faulty ratings by credit rating agencies of the securities backed by those mortgages.

Homeownership has always been associated as part of the backbone of our economy and doing away with the Mortgage Interest Deduction would further erode confidence not only in the housing market, but in the economy as a whole.

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