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REALTORS(R) address misconceptions about mortgage interest deductionWednesday, August 17, 2011
As Congress wrestles with ways to address the deficit, the debate over eliminating or reducing the mortgage interest deduction (MID) continues. A local REALTOR® trade association is questioning the connection public policy makers are trying to make between the debt and the MID. According to the Silicon Valley Association of REALTORS® (SILVAR), the MID is not only crucial to the stability of the American housing market and the overall economy, and that it’s a misconception that only the wealthy benefit from the MID, when in reality it primarily benefits middle- and lower income families. “It’s ridiculous to say that the MID is suddenly part of the deficit problem – the MID has been part of the federal tax code for nearly 100 years,” said SILVAR president Gene Lentz. “The MID makes a real difference to homeowners, especially hard-working middle-class families. This fundamental tax benefit reduces the carrying costs of owning a home, making homeownership more attainable for families. It also helps those without thousands of dollars in savings who cannot buy their home outright begin to build their financial future through homeownership.” Data from the National Association of REALTORS® indicates almost two-thirds of those who claim the MID are middle-income earners; 65 percent of families who take the MID earn less than $100,000 a year, and 91 percent earn less than $200,000 a year. “Is focusing solely on tax rates a better goal than protecting the wealth of the middle class?” said Lentz. “Changes to the MID could further damage the housing market’s recovery as well as the overall economy and job market. It is imperative that the MID remain intact and that Americans continue to receive this important benefit.” According to the 2011 National Housing Pulse Survey, Americans are adamantly against eliminating the MID. Two-thirds of respondents opposed eliminating the MID, and 73 percent of Americans said eliminating the MID would have a negative impact on the housing market and the overall economy.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley. The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics. Variations of this article have appeared in local area newspapers. For further information, please contact Rose Meily at SILVAR Public Affairs, e-mail , or phone (408) 200-0109. |
