Mortgage Interest Deduction & NAR
Wednesday, May 03, 2017
Written By: Kent Prickett

A majority of Americans believe they pay too much in taxes. Currently, Ways and Means Committee of the United States House of Representatives is discussing ways to overhaul the U.S. tax system. The current speaker of the house, Paul Ryan, and fellow house republicans have put together a blueprint for their idea of tax reform.

Their blueprint, titled, A Better Way, has three basic principles

  • It reduces the number of tax brackets to four
  • eliminates all but two itemized deductions – the Mortgage Interest Deduction (MID) & the charitable giving deduction
  • it increases the standard deduction

In addition, last week, President Trump provided his vision for Tax Reform. This plan is similar to A Better Way. Follow the links provided to explore each proposal.

At the Texas Association of REALTORS's Winter Meeting, the Chief Lobbyist for the National Association of REALTORS (NAR), Jamie Gregory discusses A Better Way and stated NAR’s position to maintain the MID.  NAR recently issues a statement about President Trump’s vision; NAR President William Brown stated “while the President’s tax proposal is well-intentioned, it’s a non-starter for homeowners and real estate professionals who see the benefits of housing and real estate investment at work every day. By doubling the standard deduction and repealing the state and local tax deduction the plan would effectively nullify the current tax benefits of owning a home for the vast majority of tax filers.”

Furthermore, NAR and PricewaterhouseCoopers believe that based on a study from the mid-90’s home prices would fall about 10% as the inability to utilize the MID would lead to reduced number of taxpayers finding home ownership invaluable.

In addition, there was an article in Sunday’s Austin-American Statesman written by George F. Will, an author for the Washington Post. In this article, Will states that “given American’s homeownership rate of about 62%, not even half of all homeowners use the deduction.”

NAR is fighting to keep a deduction that less than a third of the American population uses.

What are your thoughts on this? Do you support NAR on the need to maintain the MID? 

About the Author:
Kent has a passion for helping people and has a dream of making a difference in the lives of the people he encounters. In addition to making sure that all the technology in the building is running at optimal levels, Kent also is in charge of the flyers, branding, news articles, press releases and blogs for the Association. Furthermore, he works closely with local media promoting the Association and its members. He also maintains the websites and all the technology in the building. Kent is a graduate of Texas State University and in his spare time enjoys cooking, watching movies and spending time with his family and their friends.


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