NAR Cautions Against MID Changes

The National Association of REALTORS® has come out against parts of President Obama’s proposed budget for 2012 that would limit itemized deductions, including the mortgage interest deduction, for wealthier households.

“NAR firmly believes that the mortgage interest deduction is vital to the stability of the American housing market and economy,” 2012 NAR President Moe Veissi said. “We urge the president and Congress to do no harm.”

The president’s proposal calls for reducing the value of itemized deductions for taxpayers earning more than $200,000 in annual income — or $250,000 for joint filings of married couples. It limits the value of the deduction to 28 cents on the dollar for affected taxpayers, rather than 33 cents or 35 cents.

NAR’s concern is limitations on the MID would harm home values, hindering a budding housing recovery.

“While progress has been made in bringing stability to the housing market, the recovery has been slow,” Veissi said. “The nation’s home owners 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.”

Source: “Obama budget: Tax plans aim at rich,” CNNMoney (Feb. 13, 2012) and NAR