Whenever there’s a conversation about tax code changes, tax cuts and/or tax revenues, the issue of eliminating tax breaks provided to homeowners always comes into play (Tax Breaks).
These tax breaks have been under attack for the past few years and the arguments for eliminating some, or all of them, get louder each time they come up. Should homeowners get the benefits of deducting the interest they pay on the mortgages secured by their home? Renters don’t get such benefits. Then again, renters don’t have the costs and expense of the upkeep on the apartment or property in which they live, like homeowners do.
Will the American Dream of Homeownership become a nightmare? What might be the effects of eliminating such tax benefits? Although we continue to try and find ways to help more and more Americans (and others) realize this dream, what is being done to assist these same homeowners to continue to afford the costs of the upkeep on the home they buy, and live in?
Getting people into homes is only half the battle; helping them to stay there is becoming more difficult. What about all the homeowners who now own homes expecting to receive the benefits of these tax breaks? It’s not only the rich who own homes.
Any changes in the tax code that have the effect of reducing or eliminating the interest deduction for homeowners could severely hamper the ability of homeowners to continue to afford their home, and pay on the related mortgage debt. How will that affect our economy? Not so good…
As is usually the case, the solution is not all that simple. Unfortunately, there is no “one size fits all”. For now the homeownership tax breaks seem safe but for how long? Legislators need to tread very carefully when walking through the mine fields of any revisions to the tax code. Otherwise, the whole thing may blow up in their (and our) faces.