 |
|
|
| |
 |
 |
 |
|
 |
|
|
|
|
|
|
|
|
|
|
|
Housing
Tax Incentives
Show Strong
Public Support
Article
Date - Dec.05.2005 |
|
Given
a choice of
simplifying
federal tax
laws or retaining
current housing
incentives,
Americans resoundingly
prefer the latter,
according to
a new nationwide
survey of 1,001
adults. Two
out of three
survey participants
(68 percent)
favor retaining
deductions for
mortgage interest
and state and
local taxes
over a plan
to simplify
the current
tax code, according
to the polling
conducted by
RT Strategies
on Nov. 17-20.
“The survey
offers a cautionary
note for those
in the Administration
and on Capitol
Hill who may
be tempted to
endorse the
recommendations
of the President’s
Advisory Panel
on Federal Tax
Reform, which
would wipe out
popular tax
incentives that
promote homeownership
and affordable
housing,”
said Jerry Howard,
executive vice
president and
CEO of the National
Association
of Home Builders
(NAHB).
The White House
and Treasury
Department have
yet to comment
on the advisory
panel’s
proposal, which
was presented
to the Administration
on Nov. 1 as
part of an overall
attempt to overhaul
the tax code.
The plan calls
for replacing
the mortgage
interest deduction
with a far more
limited 15 percent
tax credit.
Also gone would
be deductions
for state and
local taxes
(including property
taxes) and interest
deductions for
home equity
loans and second
homes. It would
also eliminate
the Low Income
Housing Tax
Credit, which
accounts for
the construction
of more than
130,000 affordable
rental housing
units annually.
Commissioned
by NAHB to determine
the public reaction
to revamping
the current
tax system,
the polling
firm found that
an overwhelming
majority of
respondents
support federal
tax policies
that foster
the American
dream of owning
a home.
Specifically,
79 percent said
it is reasonable
for the federal
government to
provide tax
incentives to
promote homeownership,
and 82 percent
believe the
government should
use the tax
code to encourage
affordable housing.
“Registered
Democratic and
Republican voters
in all age groups
view efforts
to tamper with
home interest
deductibility
as a major threat
to their retirement
security and
their ability
to pay for their
children’s
college educations,”
said Lance Tarrance,
who, along with
Thomas Riehle,
is a partner
of RT Strategies.
“For many
older home owners,
the equity built
up in a home
also provides
an important
hedge against
unanticipated
health care
costs.”
Moreover, 71
percent of survey
respondents
oppose the idea
of changing
the tax code
to encourage
people to invest
more in stocks
and bonds and
less in the
homes that they
own. “And
that is exactly
what the advisory
tax panel’s
plan would do,”
said Howard.
“As we
learned in watching
the recent California
initiative battles,
complex proposals
tend to lose
support, not
gain support,
as they get
more public
attention,”
said Riehle.
“This
proposal starts
with no real
core of supporters.”
To view the
survey data
on housing,
go to www.nahb.org/taxreform. |
| |
| <<
Back
to Archive |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
|
|
 |
|
|
|
|
