In the current political race for president, former Massachusetts Governor Mitt Romney has stated that as part of his new policies, he will close government revenue and tax loopholes as part of his plan to balance the budget. He has stated that closings of loopholes will offset revenue rate reductions.
But he has not indicated which loopholes he would want to close. This has left many to wonder, would he advocate closing the home mortgage deduction? He may advocate doing so, but the chances that he will succeed are extremely low for many reasons, as follows:
The general public. There are millions of homeowners today who use the homeowners mortgage deduction. If any serious possibility were on the horizon to eliminate this deductions, there would be a fierce backlash by consumer groups, including grass roots efforts by citizens to fight elimination of this deduction. Citizen’s would undoubtedly breath fire onto any politician that advocates eliminating this deduction.
Other groups would intensely fight eliminating this deduction. These groups include any groups associated with Real Estate, such as Realtor groups, banks, mortgage companies, loan officers, and any associated groups.
In truth, there will be much talk on this and very little action. This is being proposed as a tool to justify revenue rate increases. It would not be possible to propose revenue rate increases without closing loopholes.
If this course of action occurs, look for a further blowup of the budget deficit and for the economy to be put at further long term risk.
Mortgage Home Deduction Elimination Resources:
U.S. Department of Commerce – Helps american businesses become more innovative at home and competitive abroad.
U.S. Bureau of Economic Analysis – Provides statistics on consumer spending, corporate profits, travel and tourism and much more.
Entrepreneurworld – Resource for Entrepreneurs, including starting your own business, growing your business.
Bureau of Labor Statistics – Provides companies with up to date information on employment, demand, hiring, productivity and other information that may be useful to companies.
International Trade Administration – Creates jobs and economic growth by promoting U.S. companies abroad to governments in other countries.
More Mortgage Home Deduction resources:
Department of Labor – Provides information on many labor issues that can be useful to companies, such as insurance, regulation, wages, wage hours, compensation, safety and health
U.S. Patent and Trademark Office –U.S. office to file patents to protect a companies new or existing proprietary products.
U.S. Trade and Development Agency – Promotes U.S. Exports to Foreign Countries, please review if your company is interested in exporting goods to foreign countries.
CEO Refresher – A monthly newsletter on creative leadership ideas. Short articles, brief book reviews, models, management tools, quotations and commentary.
E-Network for CEOs – Online articles and much more for CEO’s
Public Radio Planet Money – All issues money related to the public.
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