Realtors, Home Builders Attack Obama Mortgage-Interest Proposal

Dow Jones via Nasdaq.com ^ | 2/26/09 | Jessica Holzer

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WASHINGTON -(Dow Jones)- President Barack Obama's plan to scale back the popular mortgage-interest deduction, a sacred cow of the U.S. housing market, drew a scathing response from two powerful lobby groups.

The National Association of Home Builders and the National Association of Realtors issued statements condemning the proposal in withering terms Thursday, after it was unveiled earlier in the day as part of the White House's fiscal 2010 budget blueprint.

NAR President Charles McMillan also sent a letter to Obama to criticize the idea.

"There is never a good time to propose something that undermines the basic foundation of homeownership, but given our current housing crisis, this has to be the worst possible time," McMillan wrote in the letter, according to a press release issued by the group.

The mortgage-interest deduction has created a longstanding preference for homeownership in the U.S. tax code, as rent isn't tax deductible. Economists say the tax break tilts U.S. consumers toward buying rather than renting a home.

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For couples earning more than $250,000, or singles earning more than $200,000, Obama wants to take away your ability to deduct mortgage interest.

[SusaninOhio]

Is zero running out of consumer groups to p-— off yet?

[Frantzie]

Let em eat cake if they voted for Obama.

[xcamel]

"There is never a good time to propose something that undermines the basic foundation of **qualified** home ownership"

There, fixed it.

[MrB]

“oh, people making that much don’t ‘need’ that tax deduction”

/libthink

[allmost]

Tax, tax, tax. Take, take, take. Nothing belongs to anyone but the State in his sick world view anyway.

[MrB]

There was an article in the WSJ today that said that the

mortgage deduction COSTS THE GOVERNMENT X dollars per year.

If the author’s email address had been there, I’d have given him an inboxfull.

[Ernest_at_the_Beach]

It's all for the common good...nobody needs the McMansions....anyway.

See how easy that is...

[DonaldC]

If he keeps this up, we will have a defacto flat tax...everyone will be getting screwed...lol

[wewereright]

I wonder if this is indexed for inflation - in few years we’re all going to be paying it.

Remember the AMT?

[taildragger]

It's the Alternative Mininum Tax on Steriods, for lower upper middle class, because it does it to people earning much more....

This will be even worse for the "Blue States". They will get creamed! If that is the case bring it on, let these NY-er's see who and what they truly voted for....

[JPG]

Zero is gonna kick the wrong hornets nest sooner or later. Then watch Ole’ Bambi run.

[muawiyah]

Hannity was speaking today of Schmucky Schumer's complaint last year that a proposed scaling back of deductions being done by "W"'s people would be a body blow targeted to the Blue States.

Wonder what he's saying today?

[parisa]

MY GOD WHAT IS HAPPENING??? A devil has landed on these shores and won’t stop, just won’t until he’s destroyed everything.

WAKE UP, WAKE UP, AMERICA.

[allmost]

Yes. Not taking away from the citizens is a loss. It's a deragutory term. I wonder if burglars can deduct their time in prison as ‘business losses’ yet?

[who_would_fardels_bear]

Fine by me.

The government should not be in the business of encouraging one form of habitation over another.

If there are benefits to home ownership such as more control over what you get to do to your property, then that should be reward enough.

I thought all conservatives were in favor of a flat tax, if we are to have an income tax at all?

How can you claim to have a flat tax if there are deductions for particular people?

[EGPWS]

Change....

Can you believe it?

[who_would_fardels_bear]

What is happening is that the income tax is morphing into a flat tax.

Do you have a problem with a flat tax?

Are you a conservative?

[allmost]

Yes. People who work hard, actually read the contracts that they sign, do things right(mostly), and save to get ahead don’t need those type of things when a communist revolution is afoot.

[Candor7]

Why should I worry about a mortgage interest tax deduction. I will never have to buy a house and pay a mortgage again!

Housing is NOW free.

The Jubalee done come!