The Real Deal New York

Mortgage-interest deduction in danger: Obama

December 04, 2012 09:30AM

As the “fiscal cliff” debate heats up, President Barack Obama tweeted that mortgage-interest deductions could be on the chopping block if Republicans don’t agree to raise taxes on the wealthiest Americans, Housing Wire reported.

While rumors have been circulating since the election that lawmakers may scrap the once-sacred tax break, the Tweet marked the first time the President has officially stated the policy shift is up for discussion in Washington.

Yesterday, President Obama held a Twitter town hall, and user Emma Robertson tweeted using the President’s hashtag #My2k to express her concern that mortgage-interest deductions would get pulled into the contentious budget debate.

“As a home owner, I worry deductions for home owners are at risk. Is that the case?” Robertson tweeted.

The President replied using his official Twitter signature, “@soitgoesem breaks for middle class impt for families & econ. if top rates don’t go up, danger that middle class deductions get hit – bo”

As The Real Deal previously reported, mortgage interest deductions represent a nearly $100 billion-a-year revenue drain for the U.S. Treasury. But powerful lobbying groups such as the National Association of Realtors and the National Association of Home Builders are sure to throw their weight against any attempt to cut the deduction. [Housing Wire]Christopher Cameron

  • philsmart

    With an increase on already high profit taxes, the net result may actually be lower revenue for the IRS, as the wealthy can easily move their profits. When Bush Jr. lowered the rates, revenues increased, despite the lower rate. The reverse is likely to happen. Mortgage tax deductions would bring at the very least 100 times more revenue, and make a real difference.