The bipartisan panel's deficit plan did not receive enough votes to make it to Congress.
The National Commission on Fiscal Responsibility and Reform
recently came up with only 11 favorable votes for the bipartisan plan to cut nearly $4 trillion from the overall $13.8-trillion federal budget deficit over the next 10 years. The proposal needed 14 votes to make it to Congress.
Touchy spending cuts and tax changes made up the main objective to shrink the nation’s multi-trillion dollar debt within the next decade. One of the proposals was a recommendation to alter the mortgage interest tax deduction, which costs the Treasury Department an estimated $131 billion each year.
However, real estate and home building industries believe the MID is crucial for the future of the housing market. Michael Berman, chairman of the Mortgage Bankers Association, said, "It would immediately stop in its tracks any stabilization we are seeing in the housing market and would effectively increase the cost of homeownership for millions upon millions of people."
The National Association of Home Builders
also strongly opposes action by Congress that will have a negative impact on MID. The NAHB reiterated the mortgage deduction is essential for middle-class families that plan on moving into and owning their own home.