Deficit Reduction Commission Update
The New York Times recently published a misleading story, suggesting that the Deficit Reduction Commission – a bipartisan commission on reducing the federal debt – will recommend a plan that would repeal or modify a number of popular tax breaks, including the deductibility of mortgage interest payments. The New York Times article, and possibly others that follow it, is reporting on possibilities, NOT realities. Please remember that media reports that suggest that the Deficit Reduction Commission has recommended reducing or eliminating the mortgage interest deduction are FALSE. The Deficit Reduction Commission has not yet released its plan – the commission will submit its report on December 1 at the earliest. What the media is currently reporting on is an early DRAFT of the report that could change many times before the report is actually released. Fourteen of the commission’s 18 members must agree on the recommendations before they can be released. NAR is actively engaged on behalf of Realtors® and the nation’s home owners to ensure that the current MID is not changed – the tax deductibility of interest paid on mortgages is both a powerful incentive for home ownership and one of the simplest provisions in the tax code. NAR opposes any tax reform plan that does not retain the deductibility of mortgage interest. NAR also opposes any effort to convert the MID from a deduction to a tax credit.