Some days back I happen to wade through the Obama Tax Plan and boy, was I surprised by one provision in the bill. I think it was page 2 where it was expressed that homeowners would recieve a 10% tax credit for mortgage interest paid.
Now think about it, since mortgage interest is currently fully deductible, and if somebody happens to ask their accountant or CPA, what they would come to know is that under Obama’s plan, all this is set to change.
Obama Housing Crisis Plan
I tried to search the internet for comprehensive information on this and haven’t found any other source. Plus, these are the things which you hardly come across anybody discussing.
Obama Mortgage Interest Deduction
I don’t know if you understand the gravity of the situation, but such a plan would have an enormous amount of impact on the present buy vs. rent advantage. Plus I am pretty sure that this provision might end up affecting the taxes of all income levels, not just those above $250K.
Given the state of the union, I am definitely concerned as the last thing we need is something that would further hurt or cripple the housing industry.