Deficit Reduction Commission? NIMBY!

The White House’s Deficit Reduction Commission issued a proposal this week that calls for changes in how the country spends money and collects taxes. Among the recommendations that could be made to Congress is a proposal to change the mortgage interest deduction.


The proposal recommends offering a 12 percent nonrefundable tax credit to all taxpayers and capping the mortgage-interest deduction to loans less than $500,000, with homeowners receiving no credit from mortgages on a second home.

The California Association of Realtors strongly opposes the proposal and has consistently communicated its opposition to any such change to elected officials. As the housing market continues to recover from the worst financial crisis in recent history, any change that reduces the ability of the market to heal is misguided and must be rejected. The proposal from the Deficit Reduction Commission will negatively impact the housing market, further erode opportunities for homeownership across the country, and will contribute to further price declines and diminished equity for homeowners.

C.A.R. is working closely with the National Association of Realtors staff in Washington, D.C. to make certain that the real estate industry’s opposition to this proposal is heard and its far-reaching implications understood.