MID 'a wasteful use of federal resources,' says housing group

Introducing a capped tax credit and reducing MID-eligible mortgages to $500K are two proposed solutions
  • A low-income housing group released a report last week that says the mortgage interest deduction (MID) disproportionately benefits wealthy homeowners and proposing three big changes.
  • It suggests reducing MID-eligible mortgage amounts from $1 million to $500,000, introducing a 15-percent capped tax credit, and reinvesting the savings from these proposals into affordable rental housing.
  • NAR believes tweaking the MID "amounts to a de facto tax increase on current or future homeowners."

How can the United States tackle the increasingly problematic issue of homelessness and housing poverty? The National Low Income Housing Coalition (NLIHC) thinks that reforming the mortgage interest deduction (MID) is the way to move forward. But it’s going to have to lobby against the National Association of Realtors (NAR).