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
(iStock)
Rents in New York and South Florida metros surged more than 30%, led nationwide rise
Rents in New York and South Florida metros surged more than 30%, led nationwide rise
Princeton proud: Eric Schmidt reportedly bidding to save club
Princeton proud: Eric Schmidt reportedly bidding to save club
Princeton proud: Eric Schmidt reportedly bidding to save club
Fannie, Freddie to buy mortgages up to nearly $1M
Fannie, Freddie to buy mortgages up to nearly $1M
Fannie, Freddie to buy mortgages up to nearly $1M
Capital pains: How lenders are getting creative to get paid
Capital pains: How lenders are getting creative to get paid
Capital pains: How lenders are getting creative to get paid
(iStock)
Refinancing has saved homeowners billions, but window is closing
Refinancing has saved homeowners billions, but window is closing
RIP: Zombie homes on the decline
RIP: Zombie homes on the decline
RIP: Zombie homes on the decline
NY seeks $540M in mortgage aid. Homeowners need $6B
NY seeks $540M in mortgage aid. Homeowners need $6B
NY seeks $540M in mortgage aid. Homeowners need $6B
The Princeton Club flag in front of 15 West 43rd Street (Google Maps)
Paper Tigers: Princeton Club defaults on $39M mortgage, may lose digs
Paper Tigers: Princeton Club defaults on $39M mortgage, may lose digs
arrow_forward_ios

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

Loading...