You can chalk this one up to kicking homeowners while they’re already down. Congress is considering eliminating the tax deduction for mortgage interest. This is a deduction that homeowners all across this county rely upon. What does this mean for you? If the deduction is eliminated, many, many Americans will see a significant increase in their tax bill.
The idea is being proposed as part of the so-called deficit reduction plan. While reducing the federal deficit is certainly a worthwhile goal, doing it by withdrawing a valuable tax deduction, with little warning, that many homeowners have relied upon for years doesn’t quite seem fair.