NAACP Condemns Plan to Abolish Home Mortgage Tax Credit
"National Sales Tax" would raise average Alaska home price by $91,000
ANCHORAGE: The Anchorage NAACP is raising concerns about a proposal to eliminate the home mortgage deduction as part of the proposed "National Sales Tax." While this used to be a fringe Tea Party proposal, now two out of three GOP Senate candidates have endorsed it and it is a serious threat to Alaska working families. A 30% National Sales Tax would not just raise the cost of consumer goods but also could put home ownership out of many Alaskans' reach.
"The National Sales Tax would pull the rug out from under homeowners paying a mortgage, and would make it impossible for many Alaskans to buy a new home," said Kevin McGee, 1st Vice President of the Anchorage NAACP. "At a time when rent prices are sky-high, it is unacceptable to make home ownership even less affordable."
Press coverage of the National Sales Tax has focused on how it would increase prices of consumer goods and shift the tax burden onto the middle class. However, for homeowners the single largest impact would be elimination of the home mortgage deduction.
According to State of Alaska statistics, the National Sales Tax would increase the cost of the average single family home in Alaska by $91,000. That cost would be even higher in Anchorage, Juneau, Nome, and other communities with above-average housing costs.
Posted: July 21, 2014