NAHB Objects To Mortgage, Tax Budget Proposals

Washington, DC, Feb. 27, 2009--The National Association of Home Builders has taken issue with President Barack Obama's budget proposal to pay for expanded health care by reducing mortgage interest and real estate tax deductions.

“This proposal will increase the cost of housing for many middle-class families, particularly in high-cost areas such as California and the Northeast, which will only further undercut the housing market, exert more downward pressure on home values and work against the President’s efforts to stabilize housing and turn this economy around," said Chairman Joe Robson.
 
“The proposed budget would also tax a ‘carried interest’ as ordinary income, which could significantly impact the multifamily and commercial real estate sectors. At this critical point in the recession, we should be doing everything we can to stimulate demand in housing and avoid proposals that would reduce housing affordability and further destabilize prices."
 
Robson, however, did not propose an alternative form of funding for the health care initiative