NAHB Opposes Changes to Mortgage Deduction

Washington, DC, April 15, 2011 -- Any attempt to alter the mortgage interest deduction would be an attack on middle class families, said Bob Nielsen, chairman of the National Association of Home Builders, in response to President Barack Obama's deficit reduction speech this week.

 “President Obama today reiterated the importance of tax policy in promoting homeownership but endorsed limiting itemized deductions, including the mortgage interest deduction. Home owners cannot afford higher taxes at a time when the housing market is struggling to recover and contribute to economic growth.

“The President also suggested that many middle-class taxpayers do not benefit from the itemized deductions. In fact, the middle class is the primary beneficiary of the mortgage interest deduction. The reason most taxpayers itemize is because they are home owners, so it is not surprising that nearly 70% of the tax benefits associated with this vital tax incentive goes to households earning less than $200,000 a year."