Keep deduction for mortgage interest

As the voice for more than 7,500 real estate sales professionals and the homeowners they serve, Columbus Realtors have grave concerns about the April 16 “On The House” column “Tax break for mortgage interest losing support. “Reporter Jim Weiker’s article presents a negative slant on the mortgage interest deduction (MID) that has been is a critical benefit of homeownership.

More than two-thirds (68 percent) of homeowners with a mortgage take advantage of the mortgage interest deduction. Of all claiming the MID in 2014, 53 percent earned less than $100,000 and 86 percent earned less than $200,000, illustrating that the MID is not, as the article claims, “underwriting rich Americans’ purchase of $1 million homes and vacation homes.”

In addition to the mortgage interest deduction issue, from 1994 through 2014 roughly two-thirds of taxes collected by local governments in Ohio were property taxes. Yes, housing and real estate is one of the most heavily taxed sectors of our economy, so there is good reason for these tax deductions.

According to our National Association of Realtors, when a home is sold in Ohio, $39,210 of peripheral income generates for Ohio’s economy. This comes from real estate-related commerce and purchases such as furniture, appliances, remodeling and subsequent new home-building.

Since 1913, our tax code has promoted homeownership by allowing a deduction for mortgage interest. It is sound public policy, consistent with our longstanding tradition encouraging homeownership, the cornerstone of the American dream.

In many cases, it is homeownership that accelerates a person’s ability to grow their net worth through the equity through price appreciation and principle reduction as they make mortgage payments.

We hope readers understand the facts and will encourage their representatives in Congress to maintain the mortgage interest deduction as a vital incentive for homeownership and attaining the American dream.