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Key tax breaks are at risk today. The mortgage interest reduction is at risk right now and could be a tax break of the past if some get their way. Getting rid of the mortgage tax break would put a lot of people in even worse position financially during these economic times. Unemployment levels remain at relative highs and the numbers of people filing for first time unemployment insurance remains high as well. If the mortgage tax break were to be extinguished, the numbers of foreclosures is likely to increase as a result. The housing sector continues to struggle in this market and this would not be a step towards recovery. Those for eliminating the tax deduction state that the increased revenue could be used to lower the overall tax rate for all and thus be productive for even more people in America. Revising tax deductions relative to home ownership is big news right now and is the current tax reform topic of interest. The mortgage interest deduction costs $131 billion annually and most people who benefit from this tax break would likely own a home anyway. The current homes that people own are based off of this tax break and financing can include the tax break money that people then put back into their homes via mortgage payments. If the mortgage tax deduction is discontinued, would we be able to stop the rise in foreclosures? Author: Stephen Johnson
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