Mortgage Interest Deductions

 

We have heard rumors that the Obama administration has discussed the possibility of getting rid of the Mortgage Interest Deduction (MID).  “Say it ain’t so, Joe”. 

According to the USA Today, the government spent about $80 billion last year to back up the mortgage interest deductions.  One housing specialist says it wasn’t worth the money because the tax break only goes to the wealthy???? Does this sound familiar? 

Home owners already pay 80 to 90 percent of the income tax in our country, and among those who claim the MID, almost two-thirds are middle-income earners. 

The national taxpayers union tells us nearly 39 million people claimed the mortgage deduction. (Nearly 67% of Americans own homes).

For those in the $100,000 – $200,000 income range the MID claimed was almost $14,000; meaning the value of the write-off would be $3,500 

For those making $75,000 – $100,000, the deduction was around $11,000; resulting in a savings of $2,800 

For those making $50,000 – $75,000, the average deductions was around $10,000 with a savings of $2,500.00 

Through the terms of 17 presidencies, the MID has brought remarkable stability to the housing market.

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