Republicans look to cut crucial mortgage tax break

TRD MIAMI /
Aug.August 21, 2012 03:45 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
Bain Capital might start managing Harvard’s real estate assets

Bain Capital might start managing Harvard’s real estate assets

Bain Capital might start managing Harvard’s real estate assets
Placeholder image

Romney win would have taken housing in new direction: Trulia chief economist

Romney win would have taken housing in new direction: Trulia chief economist
Placeholder image

Romney wins housing vote in most swing states

Romney wins housing vote in most swing states
Placeholder image

Housing policy AWOL on the trail

Housing policy AWOL on the trail
Placeholder image

Romney plan to cut mortgage interest deduction could ‘snag’ middle class: Trulia economist

Romney plan to cut mortgage interest deduction could ‘snag’ middle class: Trulia economist
Six of seven swing states post increases in asking prices for homes

Six of seven swing states post increases in asking prices for homes

Six of seven swing states post increases in asking prices for homes
In presidential debate, candidates square off over Dodd-Frank, the Donald

In presidential debate, candidates square off over Dodd-Frank, the Donald

In presidential debate, candidates square off over Dodd-Frank, the Donald
Placeholder image

Cut mortgage tax deductions, Romney suggests

Cut mortgage tax deductions, Romney suggests
arrow_forward_ios

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

Loading...