[Congressional Record Volume 141, Number 80 (Monday, May 15, 1995)]
[Extensions of Remarks]
[Page E1034]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


CHICAGO'S NORTHWEST ASSOCIATION OF REALTORS FIGHTS TO PROTECT THE HOME 
                      MORTGAGE INTEREST DEDUCTION

                                 ______


                     HON. MICHAEL PATRICK FLANAGAN

                              of illinois

                    in the house of representatives

                          Monday, May 15, 1995
  Mr. FLANAGAN. Mr. Speaker, a home purchase is the largest investment 
most American families will ever make. American homeowners take pride 
in their properties and contribute to their communities. Real estate 
and housing comprise the engine that drives America's economy, 
accounting for 15 percent of the gross domestic product.
  The home mortgage interest deduction on the homeowner's Federal 
income tax return has proven to be a strong incentive to invest in the 
American dream of home ownership. The home mortgage interest deduction 
is a continuous, many decades old tax equalization provision allowed by 
the Federal Government to home owning American citizens. Eliminating, 
or further limiting, within the current Federal Tax Code, the home 
mortgage interest deduction will surely result in a sharp decline in 
property values and American homeowners experiencing a significant drop 
in the value of their homes. Eliminating, or further limiting, within 
the current Federal Tax Code, the home mortgage interest deduction will 
create a likelihood of a regional or national housing recession.
  Depressed housing and real estate markets would result in reduced 
local tax revenues and less money for our communities to perform such 
basic services as schools, sanitation, police protection, and 
firefighting. Depressed housing and real estate markets would quickly 
result in the need for higher local property taxes. Eliminating, or 
further limiting, within the Federal Tax Code, the home mortgage 
interest deduction will result in fewer people buying homes and the 
destabilization of the foundation of our local communities.
  The efforts of the officers, directors, staff and members of 
Chicagoland's Northwest Association of REALTORS to protect, within the 
framework of the current Federal Tax Code, the sanctity and integrity 
of the many decades old home mortgage interest deduction is hereby duly 
noted. I urge my colleagues in the House and Senate to take no 
legislative action that would result, under the current Federal Tax 
Code, in either further limiting, or eliminating, the home mortgage 
interest deduction afforded to American homeowners.


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