Bush Keen To Retain Tax Relief On Mortgage Interest

by Mike Godfrey, Tax-News.com, Washington

16 May 2005

In a bid to encourage home ownership at all levels of American society, US President George W. Bush has indicated his support for the retention of the tax deduction for interest paid on mortgages as the country braces itself for potentially major tax reform in the coming years.

"One thing we've got to make certain is to understand that the mortgage interest deduction enables more Americans to be able to own their own home. It is an important part of our tax code," Bush told a gathering of the National Association of Realtors in Washington on Friday.

Mr Bush also revealed that he supports further tax measures to include home ownership among low and middle-income groups, and urged Congress to approve the Single Family Home Ownership Tax Credit, which will give a tax credit to builders of affordable homes. The scheme has a budget of $2.5 billion over five years.

The President also renewed his call for social security reform, although offering no new proposals other than the ones he has already touted, such as the creation of personal savings accounts. He also repeated his proviso that Congress must leave the rate of payroll tax on hold.

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