The Presidential Advisory Panel on Federal Tax Reform

What They Propose:

• Replace the mortgage interest deduction with a limited 15% tax credit on loans up to $350,000.

• Eliminate deduction for state and local taxes (including property taxes) and interest deductions for home equity loans and second homes.

• Elimination of any tax deductions on second homes.

The Feedback: (survey by the National Association of Home Builders)

• 81% of voters believe it is reasonable for the federal government to provide tax incentives to promote homeownership.

• 76% oppose replacing tax incentives promoting home ownership with incentives to invest in the stock market.

• 86% don't believe their tax will decrease if tax reform is enacted.

• 30% expect they will pay more under a new tax code.

As can be expected the National Association of Realtors and the National Association of Home Builders are opposing the panel's recommendations. 

Although this received a lot of press initially, the issue seems to have taken a back burner as many came out opposed to the recommendations.

For a full copy of the report, click here.