Most Support Mortgage Interest Tax Deduction

September 22, 2010 No Comments »

tax deduction

In recent months, the mortgage interest tax deduction has come under fire, prompting the National Association of Home Builders to step up its fight to preserve it.

A survey conducted by national political and public affairs research firm Public Opinion Strategies on their behalf found that 79 percent of respondents support retaining federal tax incentives to promote homeownership.

An even greater percentage of renters (82%) support such incentives, which include the mortgage interest tax deduction.

And when told getting rid of the mortgage interest tax deduction would help ease the federal budget deficit, 72 percent of voters opposed any proposal to nix it.

“As the midterm elections draw near, voters are sending a resounding message to Congress and the Administration: Don’t meddle with the mortgage interest deduction or other tax incentives that support homeownership,” said NAHB Chairman Bob Jones, in a press release.

“Voters strongly oppose any action to curtail or eliminate the mortgage interest deduction, even when they hear an argument that eliminating the deduction would help reduce the federal deficit.”

Per the survey, 70 percent said they would be less likely to vote for a candidate for Congress if they proposed to eliminate the mortgage interest tax deduction, while 63 percent would be less likely to vote for a candidate who supported reducing the tax deduction.

The mortgage-interest deduction is estimated to cost the government roughly $100 billion this year- and the homebuyer tax credits have come with a price tag of about $22 billion, which many have argued simply pushed would-be buyers into the fold a little earlier.

Related: Are mortgage points tax deductible?

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