I don’t want to get too political with my blog, but I will try to be more newsy and without bias. I do feel it is good for people to know what is happening however, so I will share.
Today the Minnesota House of Representatives Tax Committee released a “delete all amendment” to HF2323 and added provisions that are negative to all current and potential home owners in Minnesota. I won’t go through everything in huge detail, but rather give a brief overview.
The basic idea is that the bill as it stands would eliminate Mortgage interest deduction. This has been a feature of the tax code since 1933 to prevent a double taxation situation. Currently a property owner may deduct all interest paid on their home. The proposal aims to give a “housing credit” with a maximum of $420 dollars, which is equal to 7% of up to $6,000 dollars of interest paid during the year. However, no credit is applied to the first $4,000 of interest. Therefore a homeowner must pay $10,000 of interest to receive the $420 dollar credit. Many Minnesota REALTORS® think his a bad idea.
The problem with this is that for a home buyer, it has a direct impact on what they can afford to purchase. That being the case, it will have a direct impact on property values through supply and demand.
There are other components to the bill but that is major impacting portion. Click here to view more detail to this piece of proposed legislation.
I would love to hear your thoughts on this topic, either way!
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Please note the ramifactions of this action and act responsibly.
Are they crazy? All Democrats seem to do is make it hard for the average American to make it. Let’s face it. a few hundred or thousand won’t bother the pocketbook of the wealthy. But it sure will for the middle/lower class! They’re policies/schemes/idiodic reasonings hurt those of us who work hard but make enough to get by, while they reward the many people on welfare by taking my $ and creating more programs/raises/healthcare /pd housing for them!
We really need a no vote on this. Senior Citizens still have mortgages..