President Obama’s bipartisan deficit reduction commission is considering a radical overhaul of one of the most sacred of sacred cows – the income tax deduction on interest paid on home mortgages. Americans are narrowly divided when asked about possible ways to limit that deduction.
A new Rasmussen Reports national telephone survey finds that 41% of Adults favor limiting the income tax deduction a homeowner can take only to the first $500,000 of any home mortgage, but 38% oppose any such cap. Twenty-one percent (21%) are not sure. (To see survey question wording, click here.)
Currently, the cap for deduction purposes is $1 million.
Another alternative is to limit the mortgage income tax deduction to the size of the average home mortgage, although it is important to note that Rasmussen Reports did not put a dollar value on “average.” Forty-seven percent (47%) of Americans favor limiting the mortgage deduction to the size of the average home mortgage, while 40% oppose such a limit. Thirteen percent (13%) are not sure.
The commission is considering converting the mortgage deduction to a 12% non-refundable tax credit with a cap of $500,000, but the National Association of Realtors and others are strongly opposed to any such changes at a time when the housing market is severely depressed. The deficit commission is expected to approve final recommendations on Friday for forwarding to Congress and the president.
(Want a free daily e-mail update? If it's in the news, it's in our polls). Rasmussen Reports updates are also available on Twitter or Facebook.
The survey of 1,000 Adults nationwide was conducted on November 30-December 1, 2010 by Rasmussen Reports. The margin of sampling error is +/- 3 percentage points with a 95% level of confidence. Field work for all Rasmussen Reports surveys is conducted by Pulse Opinion Research, LLC. See methodology.
Are investors receptive to one or both of the proposals for limiting the mortgage tax deduction? What’s the partisan divide on these ideas? Become a Platinum member and find out.
Rasmussen Reports is a media company specializing in the collection, publication and distribution of public opinion information.
We conduct public opinion polls on a variety of topics to inform our audience on events in the news and other topics of interest. To ensure editorial control and independence, we pay for the polls ourselves and generate revenue through the sale of subscriptions, sponsorships, and advertising. Nightly polling on politics, business and lifestyle topics provides the content to update the Rasmussen Reports web site many times each day. If it's in the news, it's in our polls. Additionally, the data drives a daily update newsletter and various media outlets across the country.
Some information, including the Rasmussen Reports daily Presidential Tracking Poll and commentaries are available for free to the general public. Subscriptions are available for $4.95 a month or 34.95 a year that provide subscribers with exclusive access to more than 20 stories per week on upcoming elections, consumer confidence, and issues that affect us all. For those who are really into the numbers, Platinum Members can review demographic crosstabs and a full history of our data.
To learn more about our methodology, click here.