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The American Homeowners Grassroots Alliance supports
the tax deductibility of mortgage interest and
private mortgage insurance. AHGA also
supports
the
exemption of capitol gains or other taxation on the
sale of the home. For most homeowners home equity
represents a substantial portion of their net worth.
For most homeowners the largest portion of that home
equity is due to appreciation.
It is in the national interest to encourage home
ownership for several reasons. It contributes
substantially to the economic health of the American
middle class. Accumulation of substantial net worth
through a lifetime of home ownership means retirees
are less dependent on both social security and
retirement programs as a source of income in their
retirement years. The stimulation of home ownership
through the mortgage interest deduction and capital
gains exemption is therefore sound economic policy.
The economic stimulus of tax benefits is multiplied by
the equity growth is created through home
appreciation.
In addition home ownership creates substantial social
benefits. Home ownership contributes to a sense of
community and social stability, and is a substantial
contributor to the growth and stability of the middle
class. Homeowners are more likely to feel a vested
interest in their communities, and support efforts to
make the communities better places to live for all
residents. For these reasons the tax incentives
accorded home ownership should be protected and
preserved.
The cap on the current $250,000/single, $500,000
married capitol gains exemption should be lifted. As
an interim step it should be indexed for inflation.
We
should avoid the creation of tax barriers to home
ownership, especially those barriers that make it more
difficult for those of low and moderate income to
attain home ownership. For this reason AHGA urges the
repeal of the tax on American Homeowners. AHGA
testimony in opposition to the tax on American
Homeowners.
A variety of additional tax incentives are
also important to home owners and should be enacted or
retained:
Tax
credits should be offered to homeowners and
builders to
encourage higher standards of energy
efficiency in new home
construction and remodeling
First time home buyers should
allowed a tax credit of 10% of the
purchase price of new home,
capped at a maximum of $6,500
The Employee Retirement
Income Security Act or 1974 (ERISA)
should be amended to permit
investments by retirement plans in
principal residences of
children and grandchildren who are buying
their first home.
The existing “tax on
talking”, originally enacted to fund the
Spanish American War, should
be repealed
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