Survey: 85% oppose mortgage interest deduction elimination

Eighty-five percent of U.S. homeowners oppose a proposal by the President’s Advisory Panel on Federal Tax Reform to replace the home mortgage interest deduction with a 15 percent tax credit and eliminate other consumer tax benefits, according to a December e-mail survey by HouseHunt.

Only six percent said they favored the proposal, and the remaining nine percent said they were undecided, according to HouseHunt.

In addition to replacing the home mortgage interest deduction, the Advisory Panel would eliminate deductions for state and local taxes, including property taxes; eliminate interest deductions for home equity loans and second homes; and eliminate the Low Income Housing Credit.

The National Association of Realtors has vigorously opposed the proposal, and other groups, including the National Association of Home Builders, have joined the fight.

“Our survey represents a random sampling of homeowners,” said Michael Bearden, president and CEO of HouseHunt, in a statement. “While not scientifically designed, we feel that our survey results accurately reflect homeowner sentiment.”

Bearden also pointed to a national survey conducted earlier by RT Strategies on behalf of the National Association of Home Builders, in which Bearden said 68 percent of respondents said they want to retain current homeowner deductions

In late October, NAR launched an aggressive advertising and public relations campaign to convince members of Congress and the leadership of key congressional committees to oppose the Advisory Panel’s recommendations. NAR predicts that house prices could decline as much as 15 percent if the proposal is adopted.