Mortgage Tax Deduction Is Safe, Bush Says
President Bush rejected the possibility Friday that the mortgage interest deduction will be eliminated from the U.S. Tax Code.
During a question-and-answer session, Bush was urged by a home builder to make sure that housing remains affordable.
“Maybe you’re hinting at whether or not the mortgage deduction would be part of a plan,” Bush responded. “I don’t think you have to worry about the mortgage deduction not being a part of the income tax law.”
A panel appointed by Bush last year recommended reducing the tax deduction for mortgage interest as part of a larger plan to simplify the Tax Code.
Bush, who has called the federal Tax Code a complicated mess, is having the Treasury Department review the panel’s recommendations.
But the White House, which initially had considered rolling out a plan this year on tax simplification, has delayed that initiative. Some Republicans have said some of the recommendations from the panel, such as the one on mortgage interest, might generate too much controversy, especially in the current congressional election year.
Referring to concerns the builder had raised about interest rates, Bush said, “You’ll be happy to hear I don’t set interest rates.”
He went on to praise new Federal Reserve Chairman Ben S. Bernanke. However, he added, “if I were you, I’d be worried about interest rates.”
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