Home Mortgage Interest Deductions To Be Reduced

Obama vs. real estate

With “hope and change,” Obama is whipping out new programs, rescue packages, bailouts, etc.  Unquestionably, he thinks all these expenditures will produce a healthier economy or at least provide help where needed.  Huge budget deficits are burgeoning and the Obama administration is forced to seek new revenue sources.  Obama’s current budget will reduce home mortgage interest deductions and funnel money towards helping these building deficits.

The initial steps will affect the higher earners, but once the door is open, what will stop the earning caps from being reduced until the final elimination?  Am I stretching the truth on this topic?

The idea that elimination of the home mortgage deduction will not affect home ownership is already being discussed. Those in favor of reducing/removing the home mortgage deduction mention the fact that Canada, the United Kingdom and Australia do not provide mortgage interest rate deductions but still have roughly similar homeownership rates as the United States.   Another added perk is the advancement of Obama’s stated goal for wealth re-distribution. Read more