This bill will limit deduction of the Mortgage Interest Deduction to $15,000 on principal residence for Oregonians with adjusted gross income less than $100,000 and eliminates deduction for incomes that exceed $100,000 and all other residence. Yearly increases in tax revenue goes to the Oregon Housing Fund to expand housing for low income, seniors, disabled, farmworkers and Native Americans.
Personal Choice and Responsibility
Oregonians at all income levels rely on the Mortgage Interest Deduction to afford their homes. It makes buying more difficult for the middle class.
The bill sets arbitrary income limitations on the Mortgage Interest Deduction resulting in higher taxes. For our tourism-based communities, the bill removes all tax incentives to purchase vacation homes. The maximum deduction amount is annually adjust by multiplying $15,000 by the percentage, if any, by which the monthly averaged U.S. City Average Consumer Price Index exceeds the monthly averaged U.S. City Average Consumer Price Index for year ending August 31, 2016.
A redistribution of wealth plan transferring the increase each year to the Oregon Housing Fund with 50% to the Home Ownership Assistance Account, 25% to the General Housing Account and 25% to the Emergency Housing Account. The Mortgage Interest Deduction has been a foundational component of homeownership since the inception of the federal tax code.