Government Affairs News

Impact of Governor's Budget on Mortgage Interest Deduction

Under the Governor’s proposed Budget Reconciliation and Financing Act of 2012 (BRFA, HB 87/SB 152), Maryland would scale back the most important tax benefit that homeowners receive – this is NOT an honor MARYLANDERS want!  URGE your legislators to OPPOSE the Governor’s BRFA Bill… 

REALTORS TAKE ACTION NOW!

The BRFA bill would reduce the mortgage interest deduction and the deductibility of state and local property taxes for many Maryland homeowners.

For nearly 100 years, the tax code has protected mortgage interest deductibility.

Under the proposal, if a Maryland taxpayer’s federal adjusted gross income exceeds $100,000; then single taxpayer’s itemized deductions would decrease by 10% when calculating Maryland taxable income – that’s an INCREASE in your Maryland taxable base!  Taxpayers with adjusted gross income over $200,000 would see their deductions decrease by 20%!

Mortgage Interest and Property Taxes account for almost 70% of total itemized deductions in Maryland.  That means Maryland homeowners will bear the brunt of this proposed tax increase.  And because housing and real estate account for over 20% of Maryland’s gross state product, more tax burdens on real estate and homeowners will only further hurt Maryland’s economic recovery.

The mortgage interest deduction and the deductibility of state and local property taxes are vital incentives for a strong housing/real estate market recovery.  Don't let the government take them away.

With so many Marylanders facing diminished homeowner equity and/or underwater mortgages, this proposal would do more harm than good!  Please help save MD’s MID (Mortgage Interest Deduction), URGE your legislators to OPPOSE the Governor’s BRFA Bill.  Many thanks for your advocacy efforts!

posted @ Friday, January 20, 2012 5:28 PM by Castelli0238