Mortgage Interest Proposal Faces Heavy Lobbying

Washington, DC, Nov. 18, 2010 -- The debt commission’s early proposal to either reduce or eliminate the mortgage interest tax deduction will face a lobbying onslaught from a trio of powerhouse business associations, according to a story in The Hill.

Members of the National Association of Realtors, the National Home Builders Association and the Mortgage Bankers Association have a significant stake in the outcome.

All three have contributed millions of dollars to lawmakers and retain lobby firms connected to influential Republican and Democratic lawmakers.

Lobbyists for some of the groups told The Hill that they have already begun to reach out to lawmakers, expressing their opposition to reducing the mortgage tax deduction. And with more than 120 new members entering Congress next year, the trade groups will have to embark on an aggressive education campaign to secure more allies.

One lobbyist monitoring the debt commission’s work predicted “war” from the trade groups if the panel recommended reducing the tax deduction, according to The Hill story.

“They will use their political muscle to make this very uncomfortable for a lot of folks,” said the lobbyist.