Signal reports that Sal Aranda and NAR’s chief economist Lawrence Yun have taken public stands against elimination of the mortgage-interest tax deduction. Aranda stated that “Realtors believe that changes to the mortgage-interest deduction now, or in the future, could threaten recent progress toward stabilizing the housing market…critically erode home prices and values regionwide, destroy middle-class wealth accumulation statewide and hurt economic growth nationwide.” Aranda points to a Tax Policy Center forum, “Rethinking the Mortgage Interest Deduction” which the Urban Institute, Brookings Institution and the Reason Foundation joint ventured. These prestigious bodies came to that conclusion, which is supported by the National Association of Realtor’s chief economist Lawrence Yun. “Realtors firmly believe that the mortgage-interest deduction is vital to the stability of the American housing market and the economy,” Yun said. “Doing away with the deduction shouldn’t be thought of as removing a tax break for homeowners, but rather increasing taxes on the middle class,” Yun stated, adding: “Furthermore, housing equity has been a major source of funds for small businesses, and any change to the mortgage interest deduction will greatly hamper their ability to create jobs.” Aranda said that the deduction has existed for “100 years.” Sal Aranda is president of the Santa Clarita Valley Division of the Southland Regional Association of Realtors.
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