Christine,
As I understand the proposal, an individual making more than $100K or a
couple making more than $150K would reduce itemized deductions by 10% or
20%. Since the deductions for home ownership are the largest deductions
for most people, those with higher incomes would lose a part of that
deduction. But he is not proposing doing away entirely with the
deduction. The headline on the article below is just plain wrong.
Steve
On 1/26/2012 1:40 PM, langwi...@comcast.net wrote:
Would someone on the list comment on the likihood of the
governor doing away with the home mortgage deduction in Maryland.
Christine
*Mortgage Interest Deduction May b Eliminated In Maryland *
**by Joe Alero 1/24/2012 sbynews.blogspot.com
<http://sbynews.blogspot.com/>
Governor O'Malley announced his budget proposal which will reduce the
deductions of all Marylanders who itemize and make more than $100,000.
Most heavily impacted is the Mortgage Interest Deduction.
Instead of introducing the proposal as a separate bill, where it would
have a hearing at which MAR could testify, the Governor is including
it in BRFA, the Budget Reconciliation and Financing Act, which means
that there will be no hearing or testimony on this specific
provision. The proposal to reduce deductions for Maryland taxpayers
will disproportionately burden Maryland homeowners.
The two most important deductions for Maryland homeowners are the
mortgage interest deduction and state and local property tax deduction.
Over 50% of Maryland taxpayers itemize, the highest proportion in the
country. Maryland has the highest percentage of taxpayers, almost
38%, claiming the mortgage interest deduction. The mortgage interest
deduction and real estate taxes account for almost 70% of total
deductions for Maryland taxpayers. In 2008, almost 1.1 million
Maryland taxpayers claimed the mortgage interest deduction. That same
year, over 1.1 million Maryland taxpayers deducted property taxes.
Real estate accounts for over 20% of Maryland's gross state product.
Housing and real estate are one of the most heavily taxed sectors of
the economy, and Maryland has one of the most aggressive real estate
tax structures in the country. Maryland property owners already carry
a significant tax burden, contributing the majority of revenue to
local jurisdictions as well as 4.6% of state tax revenues. The average
percentage of state tax revenue from real estate nationally is only 1.8%.
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