WASHINGTON, D.C. – March 3, 2011 – (RealEstateRama) — The National Association of Home Builders (NAHB) urges members of the House of Representatives to show their support for homeownership and the mortgage interest deduction by co-sponsoring H. Res. 25.”This resolution acknowledges the importance of homeownership to individual households, the economy and the nation,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. The resolution also states that the mortgage interest deduction “may well be the most important component of housing-related tax policy in America today” and should not be further restricted, he said.
“The mortgage interest deduction has been a cornerstone of the nation’s housing policy for almost a century, and it is vital to homeownership and healthy housing markets,” Nielsen added. “NAHB commends Rep. Gary G. Miller (R-Calif.), who introduced the resolution, and the more than 40 co-sponsors for their commitment to homeownership and support for the deduction.”
Eliminating or restricting the mortgage interest deduction would erase the emerging stability in the nation’s housing markets, increase the cost of homeownership, make the tax code less progressive and essentially raise taxes on the middle class. Ultimately, it would put more home owners underwater, fuel more foreclosures and impede job creation in the housing sector, where unemployment is about twice the national rate.
Additionally, removing or scaling back the mortgage interest deduction would shrink the local tax base of many communities, prompting cash-strapped state and local governments to cut jobs and essential services or raise taxes.
“The nation’s home builders strongly believe that Congress should not tamper with the mortgage interest deduction. Members of the House of Representatives should demonstrate their belief in the value of homeownership and co-sponsor this important resolution,” Nielsen said.
“Americans overwhelmingly oppose any action by Congress to tamper with the mortgage interest deduction, according to a nationwide survey of likely voters that NAHB commissioned last fall,” he added. “Almost 80 percent of the people surveyed said they support retaining federal tax incentives to promote homeownership. I encourage people who support the mortgage interest deduction to contact their Representatives and ask them to co-sponsor H. Res. 25,” Nielsen said. “Members of Congress need to know that there is widespread support for the mortgage interest deduction and that their constituents do not want it to be eliminated or restricted.”
Additional information about H. Res. 25 and contacting members of the House of Representatives is available in the “Take Action and Stay Connected” section of NAHB’s mortgage interest deduction website, SaveMyMortgageInterestDeduction.com.