American Dream, and Jobs

Recovering the American Economy and Jobs

Proposal: Make mortgage payments deductible from federal income taxes

Simply make mortgage payments, including both equity repayment and interest, fully deductible from income taxed by the federal government, (rather than allowing only the deduction of the interest portion of the mortgage payments, as at present).

Resultant Scenario of Recovery, Investment and Stability

Home sales rise dramatically, with many first-time buyers, since owning a home is key to tax saving
Home prices recover, and increase
Home refinancing soars; many owners opt for maximum mortgage
$ Trillions are injected into the economy, largely originally from private mortgage lenders
Home-related industries prosper, including home building and banking industries, with increased demands and jobs
Insurance, retail, service and related industries, and stock markets, also recover
Renewed affluence cascades into other industries, recovering jobs

Proposed limits on deductions for mortgage payments, for overall viability and fairness

Only primary residence
Only first mortgages of 15 or more years in duration
Maximum income exempted $24,000/year mortgage payment, including equity and interest
Federal exemption does not include optional add-on charges such as home insurance etc.

For implications and analysis of this proposal, click on Frequently Asked Questions
Download this proposal as a pdf presentation by clicking on: Recovering the American Economy, and Jobs

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