Reducing mortgage deductions on a few spells class warfare. Joe Robson, chairman of the National Association of Home Builders (NAHB), said in an open letter to President Obama yesterday, “with the housing market still reeling from its worst downturn since the Great Depression, this is not the time to talk about raising taxes on home buyers and home owners. This proposal will increase the cost of housing for many middle-class families.” He goes on to say, “the notion of ‘robbing Peter to pay Paul’ just won’t work. Not when the stakes are so high with our economy.”
Mr. Robson is dead right on both counts. How can anyone seriously consider raising taxes on home buyers and home owners in todays environment? This would be akin to cutting unemployment benefits in today’s economy. It makes no sense at all, except if you want to further depress the housing market.
Today on CNBC, HUD Secretary Donovan says that that it will only affect those families who “don’t need it”. At least if they proposed cutting mortgage deductions for everyone, I would still vehomintly disagree, but I would respect the fairness. Instead, what the White House proposes is the poster child for class warfare and does nothing to help housing.