Obama has just released his 2013 Budget and it appears to be meeting with the same disdain as last year’s which even the Democrats didn’t approve. This year’s version is expected to meet the same fate because of the increased taxes, increased deficit spending and reduced military presence.
Even so, the National Association of Realtors® has issued their position on the parts of the budget that will impact housing. Imagine losing the mortgage interest deduction (MID) that you currently receive on Schedule A, if you itemize your deductions.
“As the leading advocate for housing and homeownership, NAR is strongly opposed to elements of President Obama’s budget proposal that would limit itemized deductions, including the mortgage interest deduction, for thousands of families.
“NAR firmly believes that the mortgage interest deduction is vital to the stability of the American housing market and economy. We urge the president and Congress to do no harm.
“While progress has been made in bringing stability to the housing market, the recovery has been slow. The nation’s homeowners already pay 80 to 90 percent of U.S. federal income taxes. Raising taxes on them, now or in the future, could critically erode home values at all price levels. This would destroy middle-class wealth accumulation and trillions of dollars in home values nationwide.
Already Obama has tried implementing several mortgage programs that make great sound bytes for the media and re-election speeches, but offer little help for most homeowners or home prices. What the housing market really needs is a business-friendly environment that reduces the mass of regulations and taxes that prevent small and large businesses from investing in jobs. Until the millions of unemployed or underemployed people have decent paying jobs, the housing market can’t recover and people can’t keep their homes rather than losing them to foreclosure.