Mortgage tax deductions at risk

An ominous plan is being proposed in Congress – to eliminate mortgage-interest tax deductions for all houses larger than 3,000 square feet. The proposal, part of a bill drafted by Rep. John Dingell, chairman of the House Energy and Commerce Committee, will introduce a “comprehensive climate change reform legislation,” it was announced. It includes this deduction-limiting provision.“Such a law is essential to reduce carbon emissions by 60 to 80 percent by the year 2050,” he said. “In order to address the issue of climate change, we must address the issue of consumption. We do that by making consumption more expensive.” He noted that houses have long been known to contribute to greenhouse gas emissions through heating, cooling, electrical usage and building materials. However, most home builders report they have followed “green” procedures in recent years. Houses constructed within the past few years are the tightest, energy-efficient in history.Lawrence Yun, senior economist for the National Association of Realtors, pointed out that terminating mortgage-interest tax deductions for all single-family homes larger than 3,000 square feet would result in a national median house price decline of about 4 percent on all homes, not just large houses. There are at least 10.4 million single-family homes that contain 3,000 square feet of living area or more. They make up about 15 percent of the nation’s owner-occupied housing stock.