Republicans look to eliminate mortgage tax break

New York /
Aug.August 21, 2012 02:30 PM

Republicans are set to officially oppose the mortgage-interest tax deduction, Bloomberg News reported, a policy seen as crucial to the health of the housing market. Party platform drafters, working to prepare the platform ahead of next Monday’s Republican National Convention, are eliminating the measure as part of what party leaders say is an effort to make the tax code “simple, flat and fair.”

The elimination of the mortgage tax policy allows presidential candidate Mitt Romney to follow through on his plan to lower corporate tax rate to 25 percent from 35 percent and to cut individual income taxes by 20 percent. To ensure those reductions don’t diminish U.S. tax revenue Romney must eliminate $320 billion worth of tax breaks, according to Tax Policy Center data. In 2009, mortgage-interest deductions cost the U.S. $80 billion, a study by the Congressional Budget Office showed.

“What we have now on tax reform and tax relief is a very powerful statement of principle” that is “in favor of a tax system that is simple, transparent, flat and fair,” Jim Talent, a former senator of Missouri and a Romney campaign adviser, told Bloomberg.

However, some platform drafters noted that the elimination of the mortgage-interest tax deduction would be a blow to the housing market, the middle class and those aspiring to become middle-class Americans.

Meanwhile, the platform also calls for a constitutional amendment to outlaw all abortions, institutional audits of the Federal Reserve, no recognition of civil unions for gay couples and a two-state solution in the Middle East. [Bloomberg] — Adam Fusfeld


Related Articles

arrow_forward_ios
(Photo Illustration by Steven Dilakian for The Real Deal with Getty)
Mortgage applications surge 25% in the new year as interest rates drop
Mortgage applications surge 25% in the new year as interest rates drop
A photo illustration of Blend Labs CEO Nima Ghamsari (Getty, Blend Labs)
Digital mortgage firm Blend cuts 30% of staff
Digital mortgage firm Blend cuts 30% of staff
Wells Fargo puts the brakes on mortgage business
Wells Fargo puts the brakes on mortgage business
Wells Fargo puts the brakes on mortgage business
From left: United Wholesale Mortgage's Mat Ishbia and Phoenix Suns' Chris Paul, Devin Booker, and Deandre Ayton with the Footprint Center
Mortgage lender exec poised to buy Phoenix Suns for $4B
Mortgage lender exec poised to buy Phoenix Suns for $4B
41 Pinelawn Road in Melville LI and Reverse Mortgage Funding CEO Craig Corn (Loopnet, RMF)
Reverse mortgage giant lays off 119 on Long Island
Reverse mortgage giant lays off 119 on Long Island
(Photo Illustration by The Real Deal with Getty)
Purchase applications climb as mortgage rates stabilize
Purchase applications climb as mortgage rates stabilize
Leslie J. Garfield's Stanley Montfort (Leslie J. Garfield & Co., Getty)
Co-ownership can help NYC homebuyers, but adds risk
Co-ownership can help NYC homebuyers, but adds risk
(Photo illustration by The Real Deal with Getty)
Mortgage applications decline even as rates fall again
Mortgage applications decline even as rates fall again
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...