Mortgage Bankers Oppose Congress Tinkering With Mortgage Interest Deduction, Capital Gains Tax
Experts Fear Capital Gains Tax Changes Could Seriously Hamper Commercial Real Estate Investments
A congressional committee has taken up the task of making recommendations to lower the staggering federal deficit. Tax reform, including reducing or eliminating the mortgage interest deduction, is one of the strategies under consideration.
But the Mortgage Bankers Association thinks nixing the mortgage interest deduction is a bad idea.
Its Chairman, Michael D. Berman, CMB, crafted a statement reacting to options contained within a draft proposal from the co-chairs of the National Commission on Fiscal Responsibility and Reform:
“Given the fragile state of the nation’s housing market, now is not the time to be scaling back incentives for homeownership. The mortgage interest deduction is one of the pillars of our national housing policy, and limiting its use will have negative repercussions for consumers and home values up and down the housing chain.
“We are also concerned about proposals to tax dividends and capital gains at ordinary tax rates, which would seriously impact investment in commercial real estate.
“We share the widespread concern over the growing national debt and want to help identify reasonable solutions, but we cannot support proposals that would chip away at the foundations of the real estate market.”
A copy of the commission’s draft proposal can be found here.
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry.
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