Sunday, March 1, 2009

$318 Billion Tax Hit Proposed

President Obama presented his proposed budget plan for fiscal year 2010. Included in the proposed plan is a provision to reduce the mortgage interest deduction for those earning more than $250,000.

MAKING SENSE OF THE STORY FOR MY VIEWERS

  • The CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.) and the NATIONAL ASSOCIATION OF REALTORS® (NAR) are strongly opposed to this provision and are working to lobby lawmakers to oppose it as well.

  • Based on an NAR analysis, the reduced mortgage interest deduction will not only negatively impact families who earn more than $250,000, but also will impact home prices and values across the board.

  • Under this proposed budget, the middle class would see their home values reduced even further, which will hamper the economic recovery, raise foreclosures, and hurt banks’ abilities to lend, according to NAR.

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