NMMA: Push Congress to keep mortgage deduction

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The National Marine Manufacturers Association is asking its members to contact Congress about threats to the second-mortgage interest deduction.

The second-home-mortgage interest deduction can be used by boat owners if their vessel meets certain criteria and they have not used the deduction on another home. This deduction, though very modest in its effects on the federal budget, can be an important factor in encouraging boat sales, according to the NMMA.

“We do not ever intend to alarm our membership unnecessarily, but press reports suggest that some members of the Joint Select Committee on Deficit Reduction (the super committee) are targeting home mortgage interest deductions as a deficit reduction measure,” NMMA legislative director Jim Currie said in a letter to members.

“While we support deficit reduction, we do not believe the super committee is the proper forum for this action, as it does not conduct public hearings and does not solicit public input,” he added. “Furthermore, its proposals are subject only to an up-or-down vote in the Congress and cannot be amended.”

Click here for a link that will allow you to generate a letter to Congress on this issue

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Comments

11 comments on “NMMA: Push Congress to keep mortgage deduction

  1. Ed Fay

    Fays Marina BoatShop.com would like to thank SOUNDINGS TRADE ONLY for publishing articles such as this, complete with a simple link to generate the Letter to Congress.
    Its was suggested dealers use their lead management software to broadcast to our engaged boating customers and sales contacts, this concern over the Super Committee possibility of an unfavorable ruling that cannot be amended normally. This is a “forever” ruling none of us would want.

  2. Ed Thompson

    The idea that taxpayers should underwrite the expense of a boat or RV purchase by continuing the interest deduction for these toys is repulsive to a great many conservatives like myself. Those who support the second-home interest deduction for RVs and yachts are not listening to the mood of the country. No more bailouts, no more government spending of social programs, and absolutely no more interest deductions for luxury purchases. The RV and yacht industries need to stand on their own two feet without any further government assistance. I am paying my own way and I expect others to do the same.

  3. aquaholic182

    While, I don’t necessarily disagree with Ed Thompson’s comments above, this would be another nail in the coffin for the boating industry, like the home building industry, the labor to build and service most boats is American. Let’s not put any more of those out of work. BTW, I assume his suggestion is that the 2nd home deduction be eliminated all together, correct? These (2nd homes) are also luxury items for the folks with more money than the boaters in many cases. My boat is paid off now so it doesn’t matter, but it had an impact on my decision to buy a boat 20 years ago. And I wasn’t rich, just wanted to be on the water.

  4. Chris Foster

    Anytime you take away a tax deduction on the purchase of any product you will hurt the sale of that product. And yes it IS a subsidy for that product. But that is not the issue at hand. The real issue is that this country must simplify and democratize it’s tax code if we as a nation are to move forward. Every deduction for every special interest must be on the table. We should not and cannot continue to promote economic, social or public policy through the manipulation of our tax system. It was never intended to be used that way and it is a perversion to continue to use it to those ends. We would all be better off with a simple, equitable tax code. And I believe people would still buy boats, give to charities, take out mortgages, and engage in all the other activities which are now the beneficiaries of unnecessary special treatment in our current tax code.

  5. wake up call

    it’s always about “whose ox is getting gored,” isn’t it? The days of games, and tinkering around the edges are history. The super committee should axe these preferred perks without prejudice. And if any coherent American thinks we can get back to financial sanity without fundamental changes (that would be “C-U-T-S”) to the out of control entitlements out there such as social security, medicare and medicaid, they’re dreaming.
    Nobody owes me a living, and the sooner we go on a crash diet, the better.

  6. Robbie Robinson

    The intent of deductible mortgage interest was to stimulate the sale of homes and subsequently the purchase of home improvements, appliances and the like. I have no problem with taxpayers subsidizing the interest deduction of a primary residence however it is completely unfair to continue with the allowance of a Second Home interest deduction while singling out those of us who have chosen a boat or an RV as our ‘second home’. If they’re taking away boat and RV interest deductions, they must also take the ‘second home’ deduction away at the same time for a level playing field. That said, most of our buyers are paying cash now anyway so the loss of the deduction will definitely cause a slower rebound in our boat sales among those who finance their purchase.

  7. Nils

    Introduced along with the income tax in 1913, the mortgage interest tax deduction has since become the favorite tax deduction for millions of U.S. homeowners. As a Swede Im a bit confused reading about how it might not be OK to get deductions on a boat? If you choose to buy a boat instead of having a new roof on your house why not be able to get the deduction?
    Here in Sweden we have a 30 percent deduction on all our interests no difference wether it is for a house, a boat, a car or even a personal loan without any “collateral”. Maybe someone can explain why it should not be possible in the most free country in the world? Who is to decide whats best for each and everyone if you are within “limits” of the rules?

  8. Susan

    @Ed Thompson:
    it’s not just conservatives that find interest deductions for 2nd homes [or toys] repulsive. I’m a liberal in most respects, a skeptic in some, and a true conservative [I reduce, reuse and recycle] in most respects. And I don’t see why anyone should be able to deduct interest paid for any reason, from their income taxes, not even on first homes.

  9. Nils

    Isnt getting US back on track very much about keeping wheels turning!
    Money and people have one thing in common, when they meet each other you get more of them. “saving” on deduction possibilities for people who dont have cash and have to pay interest rates on a loan enabeling them to buy a product, will stop the wheels.
    If the world only was carried by us few whealty, that can afford to pay cash, it would look very different! Be careful with what you “savers” wish for! Remember its far better with 40% of something. than 100% of nothing

  10. help the middle class and you'll help US

    removing mortgage interest deductions will send our economy back to the Stone Age. You can all see what has happened to the housing market after idiot Congress even mentioned the possibility of cutting the home mortgage deduction. Residences – primary or secondary – drive the economy and create good jobs, good value, and good commerce that STAYS in the country and cannot be shipped off to China. If the interest deduction is stolen from the Middle Class I guarantee you will see a lot of homes/cabins/boats abandoned.

    Flat taxes and ‘simple’ taxes are regressive as hell, proven to tax the middle and low classes most but cost very little for the top 5%. Unless you are Bill Gates you are a fool to fall for the moralizing arguments, folk-style platitudes and rank simplification used to justify Flat Tax. the only flat tax that is fair is NO Income Tax at all, but that ain’t coming.

    If you want America to return you must help the bottom and middle – and you do that by spurring purchases and jobs in America. How about a tax CREDIT on residence and boat purchases, and cut all sales taxes by 50% for one year. THAT would get our economy going.

  11. Nils

    Based on what have been said in this blog its a 50/50 position for/against deductions!
    I must agree with ” by helping the middle class…” in his letter.
    I dont have the exact figures and limits for you guys in the states but Im dead sure that all deduction posibilities are used by everyone.
    As a citizen your are obliged to pay your tax, but not more nor less than nessecery based on what the law stipulate. As in Sweden as in the States its then the government who sets the rules.
    As a favour you are then allowed to get things like deductions for your intetest rates back also according to the law. I sincerely belive that people like Ed T for some reason dont want to see the whole picture.
    If he as he caims can pay for his own “the proper way” why is he so upset? If everyone could pay cash tbe monetary banking system would go down in weeks! The whole systems works because there is + and – in tbe economy!! Build more plusses than minuses and any country would go own the drains. The balance sheet needs to balanced, right?

    Do whatever you can to keep your deduction rules as they are or, even better, expand them to cover fpr ersoal loans aswell, but keep in mind one tbing, have the banks or credit institutions double or even tripple check every application and make sure that the erson (or company for that sake!!) ave the nessecery posibilties to pay tbeir mortages. If not you will be back in stoneage! It has been far to easy for far to many to get to credits way over what they should have been able to get based on
    income levels and/or “healthy” collateral. Would be nice to have someones opinions about my blog comments!!

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