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U.S. Senator Johnny Isakson has confirmed that the mortgage interest deduction is 'on the table in tax reform discussions. Speaking recently to a group of real estate journalists, Isakson commented," its got to be on the table like everything else. It has to be evaluated on a cost-benefit analysis."
Isakson made his comments at the National Association of Real Estate Editors (NAREE) annual conference. He argued that if a tax deduction "costs the government more money than it benefits the government, its got to go away."
Isakson, a Georgia Republican, is one of a handful of incumbents who have received strong backing from RPAC, the National Association of Realtors political action committee.
According to Inman News, RPAC made $377,353 in independent expenditures on Isaksons behalf during his successful 2010 reelection campaign. Isakson himself is a former real estate broker who currently serves on four senate committees including education, federal spending, health care, and veterans affairs.
The National Association of Realtors strongly opposes any changes to the mortgage interest deduction, arguing that changes to it could depreciate home prices by up to 15 percent.
NAR spokeswoman Sara Wiskerchen commented, "theres nothing really to say" about any proposed changes to the mortgage interest deduction until Congress introduces specific legislation. She further commented, "...it has always been NARs position that the MID is vital to the stability of the American housing market and economy, and we will remain vigilant in opposing any future plan that modifies or excludes the deductability of mortgage interest."
According to Isakson, the most politically viable solution could be to cap itemized deductions for mortgage interest, charitable contributions, and other deductions at a certain dollar amount or percentage.
Commenting on the importance of resolving this issue, Isakson explained, "we cant return our economy to where wed like to be without mortgage financing and a return of the construction industry."
Photo source: Politic365
Posted on June 12, 2013 15:43:14 by IPTV.Boyz
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