Did you know that Australia, Canada and Britain do not have a deduction for mortgage interest, yet have higher rates of home ownership than the United States?
That's one argument used by those who want to eliminate or reduce the tax deduction for interest on home mortgages.
The issue is relevant because anti-tax Republicans have at times talked about removing certain deductions. It's also relevant to local governments, which is why Tampa Mayor Bob Buckhorn and Hillsborough County Commission Chairman Ken Hagan were part of a rally to highlight the benefits of the deduction that was held under the unforgiving sun in downtown Tampa's Joe Chillura Park.
State representatives Dana Young and Janet Cruz also spoke, while a bevy of other local Democrats and Republicans gathered underneath the event tent sponsored by the National Association of Home Builders, a group that's concerned the deduction could be eliminated.
NAHB Chairman Barry Rutenberg said flatly, "Washington policy makers need to be talked to frequently to make sure that we have the possibility of home ownership." He complained that credit standards had grown too stringent, and feared that a 20 percent down payment may be required for first time home buyers.
Currently, interest on a mortgage taken out to buy or improve a home can be fully deducted, provided the loan amount is less than $1 million for married couples and $500,000 for singles. Home equity loans for everything else is limited to $100,000 for couples and $50,000 for singles.
This article appears in Jul 12-18, 2012.