Bush Tax Commission Would Jeopardize American Dream
Washington, D.C. - Congressman Brad Sherman said Wednesday that a recommendation by President Bushs tax panel to limit mortgage interest deductions would be a severe blow to San Fernando Valley homeowners.
œIn parts of the Valley where home prices are more than double the national average we have a lot at stake in preserving the deduction for home mortgage expenses, Sherman said.
The President's Advisory Panel on Federal Tax Reform on Tuesday discussed lowering the limit on mortgages eligible for the interest deduction. A uniform cap below the current $1-million limit would be especially unfair to homeowners in California, which has some of the nation's highest home prices.
œThis is a risky recommendation. It is tantamount to slapping middle-class Californians with a huge tax increase, said Sherman, who supports the current tax deduction for mortgages.
œThe presidents panel is out of touch with families who have worked hard to achieve the American dream of home ownership, he added. œI will fight this misguided proposal and hope to see it soundly rejected.
The home mortgage deduction is critical to the economy of the Valley. It provides benefits even for people who do not own homes by spurring economic development. A change in tax laws that undercuts home values also would hurt senior citizens whose equity in their homes is critical to retirement plans.
œIn the Valley, most people have most of their wealth tied up in the value of their home, Sherman said. œIf home values drop by a quarter to a third, our communities would suffer from top to bottom.
The presidents tax commission is scheduled to make its final report by Nov. 1.