For the first time, the National Association of Home Builders has agreed to support converting the Mortgage Interest Deduction (MID) to a tax credit. By shifting the MID to a tax credit, all tax payers, not only those who itemize, can benefit. The tax credit also provides the same percentage cost reduction to all homeowners deducting interest payments whereas the current deduction provides a deeper advantage to higher income homeowners because they have a higher marginal tax rate.
