12/15/05

Housing. The American Dream. The roof over the heads of mom, dad, and the kids. Its precious and not to be taken for granted. During otherwise trying times its no secret that housing had been the absolute backbone of our society and way of life in America.

Now, housing is a target by possibly well intentioned but otherwise uninformed fat cat bureaucrats, and politicians. There is cause for alarm.

What’s this all about you say? It’s the President’s Panel on Federal Tax Reforms recommendation to tinker with and ultimately do away with the MORTGAGE INTEREST DEDUCTION and the deduction of PROPERTY TAXES on your tax return.

Housing values will drop – most economists and this author agree on that. Equity in homes will fall. This proposal is so outlandish that every American Homeowner ought to sit up straight and take notice and let their elected Officials in Washington, DC know that there will be a price to pay at the polls if they support such a position that would attack their homes, their nest eggs, their hard earned dollars.

While Tax Reform is a noble cause and certainly something to be dealt with, messing with the sacred Mortgage Interest Deduction is not the way to go. If you want to see the value of housing fall, the American Dream become a possible nightmare, and the driving engine of the economy to start misfiring, then sit back and do nothing. My recommendation and the recommendation of the National Association of REALTORS is to contact your U.S. Congressman and Senator and let them know how concerned you are. Make no mistake, there are those that will tell you this proposal has little chance of passing. If you buy into that notion, we’re in serious trouble. If the public does not rise up and let itself be heard on this issue, we’re apt to be sucker punched – its just that serious.