"Democrates propose higher taxes on large homes"
The Democrat chairman of a key congressional committee has provided new details on his controversial plans to deny mortgage interest deductions to people who own large homes.
Rep. John D. Dingell (D-Mich.), who as chairman of the Energy and Commerce committee is one of the most powerful leaders in the House, last Thursday unveiled a draft of his forthcoming "carbon tax" legislative reform package. As expected, the bill would "phase out the mortgage interest deduction on large homes."
Dingell defines large as 3,000 square feet or more of interior space. The draft language does not explain who will be responsible for measuring houses' square footage or how the federal government will audit compliance.
In a statement, Dingell said he is targeting big houses because they "have contributed to increased sprawl and longer commutes. Despite new houses in and of themselves being more energy efficient," he said, "the sheer size, sprawl and commutes lead to drastically more energy use-or to put it more simply, a larger carbon footprint."
In the draft released Thursday, Dingell offered a detailed phase-out schedule for the mortgage interest writeoff, beginning with houses of 3,000 square fee-which would lose 15 percent of their deductions-and ending with houses of 4,200 square feet and larger, which would receive no deductions at all.
Dingell defends his tax proposals as needed remedies to overconsumption and wasteful use of energy, which he argues are contributing to excessive greenhouse gas emissions and global warming. "In order to address the issues of climate change," he said, "we must address the issue of consumption-we do that by making consumption more expensive." Dingell's plans have drawn criticism from the National Association of Realtors and the National Association of Home Builders, both of whom questioned its practicality and its focus on square footage rather than energy efficiency and measured usage. The NAR estimated that roughly 10.4 million single family homes in the U.S. have more than 3,000 square feet, and represent 27 percent of the total valuation of single family units.
Rep. John D. Dingell (D-Mich.), who as chairman of the Energy and Commerce committee is one of the most powerful leaders in the House, last Thursday unveiled a draft of his forthcoming "carbon tax" legislative reform package. As expected, the bill would "phase out the mortgage interest deduction on large homes."
Dingell defines large as 3,000 square feet or more of interior space. The draft language does not explain who will be responsible for measuring houses' square footage or how the federal government will audit compliance.
In a statement, Dingell said he is targeting big houses because they "have contributed to increased sprawl and longer commutes. Despite new houses in and of themselves being more energy efficient," he said, "the sheer size, sprawl and commutes lead to drastically more energy use-or to put it more simply, a larger carbon footprint."
In the draft released Thursday, Dingell offered a detailed phase-out schedule for the mortgage interest writeoff, beginning with houses of 3,000 square fee-which would lose 15 percent of their deductions-and ending with houses of 4,200 square feet and larger, which would receive no deductions at all.
Dingell defends his tax proposals as needed remedies to overconsumption and wasteful use of energy, which he argues are contributing to excessive greenhouse gas emissions and global warming. "In order to address the issues of climate change," he said, "we must address the issue of consumption-we do that by making consumption more expensive." Dingell's plans have drawn criticism from the National Association of Realtors and the National Association of Home Builders, both of whom questioned its practicality and its focus on square footage rather than energy efficiency and measured usage. The NAR estimated that roughly 10.4 million single family homes in the U.S. have more than 3,000 square feet, and represent 27 percent of the total valuation of single family units.
posted by Ken Calhoon at 7:33 AM
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