A couple of weeks ago, I wrote about how the Republican National Committee (RNC) voted not to commit to the preservation of the mortgage interest deduction (MID).
According to press reports, the National Association of REALTORS® and other real estate industry groups were victorious in getting the RNC to adopt some “compromise language”.
However, the compromise language is still non-committal when you consider that one of the RNC’s primary goals is to overhaul the tax code. The new language basically states that if the RNC can’t overhaul the tax code, MID must be preserved.
Huh? So you are willing to preserve MID if you can’t eliminate it? Gee, thanks…I think. In return, I will vote for the Republican nominee if there is no Democratic nominee for any elected office.
A Wall Street Journal article credited the real estate industry’s lobbying clout among the reasons for the compromise.
“The overnight turnaround on the issue reflects the real-estate industry’s continued lobbying clout – and the mortgage deduction’s ongoing curb appeal for voters – as Congress begins the process of streamlining the U.S. tax code.”
I guess I just don’t see how this so-called compromise language is worth anything, but the fact of the matter is that real estate industry groups will continue to preserve MID. Nobody should be patting their backs yet. As I mentioned in the previous article about this topic, Democrats aren’t necessarily committing to preserving MID neither.
If you are planning on buying or selling a home in the Pioneer Valley, make your first call to Michael Seward at 413-531-7129.