Reports on cuts to MID are premature

This is how rumors are started. Yesterday several major media outlets (WaPo, NYT) ran stories about a sneak peek of a draft report from the Deficit Reduction Commission (DRC), a bipartisan commission charged with recommending steps to reduce the federal debt. The draft report contains a recommendation that the popular Mortgage Interest Deduction (MID) tax break be reduced or repealed in order to bring the government’s expenses in line with its revenues.

Here are the facts: The DRC hasn’t released its report. Yesterday’s stories were about a sneak peek at a draft. In order to report out its recommendations, 14 of the 18 members must agree to them. As it stands, it’s expected that this current draft will not garner enough votes from the DRC members to pass and Ezra Klein of the Washington Post posits that the DRC may never agree to anything.

All of this aside, Congress must ultimately act on any recommendation the DRC may bring forward, and the DRC itself has very little power to force Congress to do anything with their plan.

Now you know.

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5 Responses to Reports on cuts to MID are premature

  1. Lenn Harley says:

    I disagree. The board’s recommendations will be used by the administration to force those parts of the report that suits it’s agenda of more government control down the throats of the public and congress.

    The days of the MID are, IMO, numbered. Not because it makes fiscal sense, but because the housing industry has been a target of the administration from the day they took office.

    Citizens building equity and independence are a not easily controlled.

  2. Such is the nature of media outlets, in their frenzy to be the first to report anything, they will also put out inaccurate information. Looking forward to the report.

  3. Haiku Cliffs says:

    It’s not surprising that the media would sensationalize anything just to get more coverage. Shameful. When does the DRC report come out?

  4. Dawn M. West says:

    Actually, the bill that will be presented is…..any loans over $500,000, the MID would be dropped as a tax wirte off. I am getting two different reports. 1. Miller out of California introduced it and Bob Casey from Pa, introduced it…..no matter, it is on thetable for review w/council, then, would go before congress, then senate, then back to congress……so, it is still in th eealry stages but is a proposal ready for process! Illiminate the MID for those home loans over $500,000.

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