November 6, 2008
Market Watch Interviews Senior Economist Gerald Prante on Obama?s Policies on Housing
By Amy Hoak
Between rising foreclosures and falling home prices, housing issues became a huge concern in the months leading up to the election. As such, they're likely to continue to take priority during President-elect Barack Obama's first term.
During his campaign, Obama highlighted other housing-related proposals as well, including:
- Universal mortgage credit. His proposed 10% universal mortgage credit for homeowners who don't itemize their taxes could provide an average of $500 to 10 million homeowners, most of whom earn less than $50,000 per year, Obama's campaign said. But Gerald T. Prante, of the Tax Foundation, argues that a better reform would "eliminate the current mortgage interest deduction and replace that with a universal mortgage credit for everyone." He added that the solution to a more equitable tax policy for housing "is not more housing subsidies, it's less."
