[Congressional Record Volume 145, Number 52 (Thursday, April 15, 1999)]
[Senate]
[Page S3816]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


 SENATE CONCURRENT RESOLUTION 26--EXPRESSING THE SENSE OF THE CONGRESS 
THAT THE CURRENT FEDERAL INCOME TAX DEDUCTION FOR INTEREST PAID ON DEBT 
   SECURED BY A FIRST OR SECOND HOME SHOULD NOT BE FURTHER RESTRICTED

  Mr. ASHCROFT submitted the following concurrent resolution; which was 
referred to the Committee on Finance:

                            S. Con. Res. 26

       Whereas homeownership is a fundamental American ideal, 
     which promotes social and economic benefits beyond the 
     benefits that accrue to the occupant of the home;
       Whereas homeownership is an important factor in promoting 
     economic security and stability for American families;
       Whereas it is proper that the policy of the Federal 
     Government is, and should continue to be, to encourage 
     homeownership;
       Whereas the rate of homeownership grew from 64.7 percent of 
     households in 1995 to 67 percent in 1998;
       Whereas the housing needs of the population will change as 
     the population ages;
       Whereas the greatest growth sectors in homeownership are 
     minorities and first-time homebuyers;
       Whereas the level of homeownership among foreign-born 
     naturalized citizens who have been in the United States for 
     at least 6 years is the same as the level of homeownership of 
     the Nation as a whole (67 percent in 1998);
       Whereas the value of a home represents a valuable source of 
     savings for a family;
       Whereas the provisions related to homeownership are among 
     the simplest and most easily administered provisions of the 
     Internal Revenue Code of 1986;
       Whereas the current Federal income tax deduction for 
     interest paid on debt secured by a first home has been a 
     valuable cornerstone of this Nation's housing policy for most 
     of this century and may well be the most important component 
     of housing-related tax policy in America today;
       Whereas the current Federal income tax deduction for 
     interest paid on debt secured by second homes is of crucial 
     importance to the economies of communities in each of the 50 
     States: Now, therefore, be it
       Resolved by the Senate (the House of Representatives 
     concurring), That it is the sense of Congress that the 
     Federal income tax deduction for interest paid on debt 
     secured by a first or second home should not be further 
     restricted.

  Mr. ASHCROFT. Mr. President, on this April 15, Tax Day 1999, I rise 
in support of one aspect of our deservedly maligned tax code--the 
mortgage interest deduction. The mortgage interest deduction provides 
invaluable assistance to American families seeking the stability and 
comfort of a home they can call their own.
  I purchased my first home, a small fieldstone farmhouse in the 
Ozarks, in the Spring of 1967, just before proposing to my wife, Janet. 
Like most families, paying for it was the single largest task in our 
young lives. It was, with the wisdom of 30 plus years, a 
transformational event. For it represented our first real taste of what 
James Truslow Adams called the ``American Dream.''
  The experience Janet and I had paying for that farm is not uncommon. 
In fact, the largest debt most families take on in their lifetimes is a 
home. Two-thirds of Americans own a home, as do approximately 80 
percent of Americans over the age of 50 (unfortunately, Janet and I now 
fall into both categories). This represents real progress. In 1940, 
fully 56 percent of Americans were renters. Clearly, America has come a 
long way.
  People buy homes for different reasons. For us, our Ozark farmhouse 
offered many things: a place of safety to raise a family, the potential 
of financial security, a sense of community. As I travel across this 
great country, couples of all ages suggest that they are looking for 
the same things Janet and I sought over a quarter century ago. They 
seem to know, as we did, that buying a home is among the essential 
steps a family takes to ensure stability and prosperity in their lives.
  Unfortunately, while homes are a worthwhile investment, they also are 
expensive. Real estate experts recommend that families buy homes valued 
at over three times their annual income--a sum far greater than what 
families could pay back in a year, or two, or even five. So, most 
Americans take out a mortgage. It is, frequently, a commitment to repay 
the loan (with interest) over a 30-year period.
  Historically, the Federal Government has encouraged such behavior. It 
has done so to promote stable families in stable homes. Through the 
home mortgage tax deduction, one of the best and most praise-worthy 
parts of our highly-flawed tax code, the government allows taxpayers to 
deduct the cost of interest on their mortgages from their income taxes. 
In the early years of a mortgage, nearly 90 percent of payments go to 
interest charges and are therefore tax deductible.
  The home mortgage deduction not only encourages home buying, it also 
helps to promote community and family. In my home state of Missouri, 
526,744 tax filers claim the interest deduction out of 2,416,434 
returns. These are families trying to build their homes, getting what 
advantages they can out of the overly-burdensome tax code.
  Across the rest of the country, homeownership is an important factor 
in promoting economic security and stability for American families. In 
fact, homeownership is one of the most valuable sources of saving for 
American families and, unlike other forms of saving, it is encouraged 
and facilitated by our tax code.
  The home mortgage deduction is also of great assistance to many of 
our citizens who are trying hardest to establish the stability and 
security of homeownership. The greatest growth sectors in homeownership 
today are among minorities and first-time homebuyers, who are 
frequently just on the cusp of attaining the American dream.
  Similarly, immigrants, who come to this country seeking a new way of 
life, are beneficiaries of the mortgage deduction. In fact, the level 
of homeownership among foreign-born naturalized citizens who have been 
in the United States for at least six years is the same as the level of 
homeownership of the Nation as a whole. When families such as these, 
who are new to our shores, prosper, we as a nation prosper.
  In short, the home mortgage deduction is an important benefit to 
citizens across this great land. It is in our national interest to 
maintain this portion of the tax code so that new generations can also 
experience the safety and security of homeownership. I urge my 
colleagues to join me in support of this resolution.

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