Some say that targeting mortgage interest tax breaks more towards middle class and lower income homeowners will provide a tax benefit where it is needed most and create revenue that can be used to help end homelessness.<\/p>\n
\nI\u2019m not sure how accurate that is, but it\u2019s an interesting notion.<\/p>\n<\/blockquote>\n
Mortgage interest tax deductions are\u00a0a part of the tax code that allows some homeowners to deduct a portion of the interest they pay on their mortgage from their taxable income.<\/p>\n
Under current law, homeowners who itemize on their tax returns can deduct the interest paid on mortgages on first and second homes up to a total of $1 million, and the interest on up to an additional $100,000 in home equity loans.<\/p>\n
One group seeks to modify the current MID<\/h2>\n
The National Low Income Housing Coalition (NLIHC) and United for Homes campaign propose to modify the current mortgage interest tax break by reducing the size of a mortgage eligible for a tax break to $500,000, and to convert the deduction to a 15% non-refundable tax credit.<\/p>\n
Accordingly, the revenue generated from these savings would be used to fund the National Housing Trust Fund. And as a result some 16 million more homeowners would get a tax break<\/b><\/p>\n
The few versus the many<\/h2>\n
Think about it: Only 24\u00a0percent\u00a0of all taxpayers claim the MID.<\/p>\n
By converting the MID to a credit, all homeowners with mortgages would get a tax break, not just those who have enough income to file itemized tax returns.<\/p><\/blockquote>\n
Through their proposed housing tax reform, they say the number of homeowners with mortgages who would get a tax break would increase from 39 to 55 million.<\/p>\n
According to a national poll conducted by Belden Russonello Strategists, \u201cSome 60% of Americans favor the United for Homes housing tax reform proposal. Seventy-six percent of Americans favor building more affordable housing in their states to help end homelessness.\u201d<\/p>\n