Latest news - the National Commission on Fiscal Responsibility and Reform has issued their report. This commission was charged with the responsiblity of coming up with a plan to reduce the deficit. Well, the plan is, quite frankly, alarming.
While I strongly agree with Senator Coburn that we must take action, I must disagree with this particular provision. While admitting a bias, the Mortgage Interest Deduction (MID) has been a great success in creating home ownership. The fact that not as many Americans use this deduction because they don't itemize is not a reason to get rid of it or decrease it. The real reason is that over the years Congress has changed and tinkered with the tax code.
For example, how many of you out there remember you used to be able to deduct the interest on your credit cards and automobile loans? Congress needed to raise revenue so they took that away.
Now, how many believe once they take this important deduction away that rates won't eventually go back up? For those that answer no I have a bridge near Brooklyn for sale.
Tell your Senator and Congressman the answer is to lower - make that LOWER - spending. Then tell them you want to keep your deduction. Keep homeownership affordable. This will also help the economy and protect one of the few industries that truly is local - home builders.