Most Homeowners Oppose Proposal to Replace Home Mortgage Interest Deduction An overwhelming 85% of homeowners polled across the country said they are opposed to a proposal by the President’s Advisory Panel on Federal Tax Reform to replace the home mortgage interest deduction with a 15% tax credit and eliminate other consumer tax benefits, according to an e-mail survey conducted in December by HouseHunt.com.
Only 6% said they favored the proposal. The remaining 9% said they were undecided.
In addition to replacing the home mortgage interest deduction—an important component of the U.S. tax code since 1913—the Advisory Panel would eliminate deductions for state and local taxes, including property taxes; eliminate interest deductions for home equity loans and second homes; and eliminate the Low Income Housing Credit.
“Our survey represents a random sampling of homeowners,” says Michael Bearden, president and CEO of HouseHunt.com. “While not scientifically designed, we
feel that our survey results accurately reflect homeowner sentiment.”
Bearden also pointed to a national survey conducted earlier by RT Strategies on behalf of the National Association of Home Builders. That survey found that 68% of respondents said they want to retain current homeowner deductions.
In late October, the million-plus member National Association of Realtors launched an aggressive advertising and public relations campaign to convince members of Congress and the leadership of key congressional committees to oppose the Advisory Panel’s recommendations. The industry trade association predicts that home prices, particularly in high cost areas, could decline as much as 15% if the proposal is adopted.
Eight members of the House Ways and Means Committee recently sent a letter to Treasury Secretary John Snow urging the Bush Administration to reject the Advisory Panel’s proposal. |
