The debate over tax reform has put home mortgage interest and property tax deductions on the table. While this report may indicate little value in them to lower income owners, many nonetheless do benefit from them, and so too does the housing industry--because they are among the considerations that many home buyers use in deciding to buy a home. "The benefits of itemized deductions for mortgage interest and property taxes vary by income and demographic characteristics. The two deductions increase after-tax income most for high-income families, particularly those with children, while low-income households hardly benefit at all. On average, homeowners in the highest quintile see a 1.4 percent rise in after-tax income, compared with just a 0.3 percent increase for those in the middle quintile and virtually no gain for those in the bottom two quintiles. Within each income quintile, families with children experience the largest income boost, while elderly households benefit the least."
Posted on: Wed, 28 Aug 2013 21:32:18 +0000
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