Home ownership provides stability in our communities, and gives one a sense of belonging to their community. It fosters that independent feeling of owning a piece of land to do as one wishes without landlord restrictions. The renter is subject to rent increases while a home owner with a fixed rate mortgage will not see those periodic increases. Owning a home develops "roots" in the community for one's family and the community at large. It fosters creative instinct with design and personality style, and provides a certain peace of mind. Who doesn't love the feeling of pride and accomplishment when entertaining friends at your home?
The home mortgage interest tax deduction is a huge benefit to the middle class. In general terms it saves the average taxpayer with a $400,000 home loan at 4% (here in Seattle the average home is about $400,000) about $4,480 per year in taxes. That is $373 per month. In addition to the interest deduction the property tax is also tax deductible and increases the average savings per month to $467. This is a much needed benefit for the middle class to keep them in the midddle class. Many retirees now and more so in the near future will use the equity in their homes for retirement by using reverse mortgages to supplement their income and keep them out of poverty.
Home ownership drives the economy because for each home sold an average of 3% of the price of a home is spent in the economy for fix up items, appliances, furniture, roofs, paint, carpets, patio furniture, and the list goes on and on. Factor in all the ancillary jobs like those that deliver, mine, process and build causes a ripple effect that goes on and on. Closing loopholes on off-shore accounts, deductions for luxury yachts and corporate jets should be eliminated not something that benefits the vast majority of Americans. To include this in any party's platform is irresponsible, immoral, and mean spirited. Following is the article:
Source: Bloomberg News/Business Week
Republican platform drafters refused to put their party on record for preserving the mortgage- interest deduction, giving Mitt Romney more flexibility to promote his plan to lower tax rates paid by corporations and the wealthiest Americans without increasing the federal debt.
The platform panel, meeting in Tampa, Florida, in advance of the Aug. 27 Republican National Convention, defeated a proposed mortgage deduction amendment by a show of hands as it moved toward today’s scheduled completion of the draft statement of positions the party will offer voters in the November election.
The document, which was also amended to include a call for Federal Reserve audits, will be submitted next week for approval by the full convention.
The mortgage interest vote was a shift in Republican policy from four years ago, when the party platform said that “because affordable housing is in the national interest, any simplified tax system should continue to encourage homeownership, recognizing the tremendous social value that the home mortgage interest deduction has had for decades.”
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