If you own house and carry a mortgage, you’ll want to pay attention to the steps lawmakers are looking to take to reduce the federal deficit.
You really do.
Both democrat and republican lawmakers are considering cutting back the home mortgage interest deduction – a popular tax break that allows homeowners to deduct the interest from their mortgage debt.
Some critics argue that phasing out the deduction could save the government billions.
And, while that maybe true, doing away with the deduction could more than dent a real estate market that is just starting to show signs of recovery.
Consumers love incentives. If lawmakers phase out the mortgage tax deduction, that will stand as one more reason for people who are on the fence not to buy a home.
Also, for many people, the deduction is the difference between getting something back or paying taxes at the end of the year. The more people have to pay, they less they will be willing to spend.
What do you think? Keep the deduction or send it on its way?