Dear Mr. Physioc:
Thank you for writing to me regarding the changes to the mortgage interest deduction and other proposals affecting homeowners in the tax reform bill. I appreciate hearing from you on this important issue.
As you may know, Republican members introduced their tax reform proposal in November 2017. This legislation was drafted behind closed doors and without bipartisan input from their colleagues in both the House and Senate. Rather than lowering taxes for working and middle class families and keeping our federal deficit in check, the bill passed in Congress neglects the needs of average Americans. The biggest winners in this legislation are corporations whose federal tax rates were cut by fourteen points. Estimates by the non-partisan Joint Committee on Taxation say that nearly half of all Americans can expect a tax hike by 2027. Lower and middle-income taxpayers will bear the burden of paying for taxes that benefit corporate interests and shareholders.
As Attorney General of Nevada, I saw firsthand the devastation caused by the financial crisis on our state. Thousands of Nevadans lost their homes and even more were left with "underwater" mortgages, where borrowers owed more on their house than the value of the property. Though our economy has rebounded, many Nevadans still face the consequences of the crisis today. As your United States Senator, I am committed to ensuring all Nevadans have equal opportunity to build a prosperous life.
This legislation fails to enable and assist Nevadans in achieving the dream of homeownership or helping homeowners stay in their homes. Analysis by the Joint Committee on Taxation found that roughly one-fifth of taxpayers would end up paying higher taxes under the plan proposed by the House of Representatives. I support keeping the mortgage interest deduction, which is an important component to ensuring all Americans are able to afford a home. Current proposals changing the mortgage interest deduction in the tax code discourages homeownership for younger Americans and punishes families and seniors that pay their monthly mortgage bills by threatening to decrease the value of their homes. In 2015, more than 240,000 Nevada tax filers deducted their mortgage interest payments from their taxes.
I strongly believe that every American deserves the chance to fulfill the American dream of homeownership without unnecessary burdens. This tax plan fails to achieve that goal. Smart tax reform should enable all Americans to do so and support the economy through job creation, investment and development. Please rest assured that I will continue my work in Washington to find real bipartisan policy solutions with the goal of keeping Nevada families in their homes, ensuring that more citizens have a chance at homeownership and stabilizing communities. As I continue to work for Nevadans in Congress, I will remain mindful of your views.
Thank you again for contacting my office. Please continue to share your thoughts with my office for the betterment of our state. If I can be of service to you in any other way, please do not hesitate to let me know.
Sincerely,
Catherine Cortez Masto
United States Senator
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