support for reforming the mortgage interest deduction · this is called the mortgage interest...
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Support for Reforming the Mortgage Interest DeductionMortgage Interest DeductionAnalysis of a national survey of adults forAnalysis of a national survey of adults for the National Low Income Housing Coalition
September 2012
Opinion Research ■ Strategic Communication
Objectives of Researchj
I f b t ttit dInform about attitudes on:
Mortgage interest deduction Mortgage interest deduction
Possible reforms
Programs to assist low‐income people b i i h iobtaining housing
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Methods
1,006 nationwide telephone (landline and cell phone) interviews, Aug 7‐19, ±3 1 i f li±3.1 margin of sampling error
I l di l f Af i Including oversamples of African Americans and Latinos
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Overview
Broad support for tax breaks on the interest Broad support for tax breaks on the interest from home mortgages
Majorities open to different ways of providing that mortgage relief
Majorities see the need to boost support for
NLIHCrental housing for low‐income people
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Outline
1. Context: The economy and taxes
2. Changing the MID
3. Funding low‐income rental housing programs
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Context: The economy and taxes
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National PrioritiesTop Priority High Priority
29%
36%
49%
52%
78%
88%
Improving public schools
Creating jobs
31%
29%
39%
49%
70%
78%
i h l h
Reducing the deficit
Improving public schools
18%
26%
32%
38%
50%
64%
Cutting taxes
Increasing health care coverage
16%
19%
33%
30%
49%
49%
Addressing mortgage crisis
Helping people avoid foreclosure
18% 29% 47%
0% 50% 100%
More affordable low‐income housing
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Please tell me how high of a priority each of the following should be for the federal government: top priority, high priority, middle priority, low priority, or not at all a priority. (RANDOMIZE Q2‐Q9) Q2. Reducing the deficit; Q3. Creating jobs; Q4. Cutting taxes; Q5. Improving public schools; Q6. Creating more affordable housing for low‐income people; Q7. Addressing the mortgage crisis; Q8. Increasing health care coverage; Q9. Helping people avoid foreclosure.
National ProblemsVery Large Large
82%80%90%100%
46%42% 47% 43%
68% 68% 65%
46%50%60%70%%
36% 26% 21% 22%
47% 43%
35%
10%20%30%40%
21% 22%11%
0%10%
People not being able to
People not being able to
People not being able to
People not having access
People without transportation
afford health insurance
afford college find housing they can afford
to adequate nutrition
to take them where they need to go
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Thinking about the country as a whole, please tell me how much of a problem is each of the following – a very large problem, a large problem, a small problem, or not much of a problem at all. RANDOMIZE Q14‐Q18; Q14. People not being able to afford health insurance; Q15. People not being able to find housing they can afford; Q16. People not being able to afford to go to college; Q17. People without transportation to take them where they need to go; Q18. People not having access to adequate nutrition
Changing the mortgage i d d iinterest deduction
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Overall, Americans maintain broad support for the idea of the MID
2012 ‐11%‐11% 33% 43%
PoorSomewhat Poor
22% 76%2012
%
PoorVery goodSomewhat good
2011 ‐10%‐9% 32% 47%19% 79%2011
As you may know, homeowners can claim a deduction on their federal income taxes for interest payments on mortgages up to one million dollars for their primary or second homes. This is called the mortgage interest deduction, which lowers
‐100% ‐50% 0% 50% 100%
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income taxes for some homeowners. The amount that the mortgage interest deduction lowers a homeowner’s income taxes depends on how much interest the homeowner paid over the year and the homeowner’s tax bracket. Overall, do you think the mortgage interest deduction, as it is now, is a very good idea, somewhat good, not very good, or poor idea?
MID modifications are popular
Replace with flat tax creditCap the max mortgage at $500K
Strongly Favor Somewhat FavorStrongly Favor Somewhat Favor
Replace with flat tax creditCap the max mortgage at $500K
30% 26% 56%Total36% 27% 63%Total
31% 30% 61%Renters34% 32% 66%Renters
30% 23% 53%Home‐owners37% 23% 60%
Home‐owners
0% 50% 100%0% 50% 100%Now I’m going to read you some proposals people have made for changing the mortgage interest deduction Please tell me if you
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Now I m going to read you some proposals people have made for changing the mortgage interest deduction. Please tell me if youfavor or oppose each proposal. (WAIT FOR RESPONSE) Is that strongly or somewhat? (RANDOMIZE Q22‐Q23) Q22. Cap the maximum mortgage for which someone can get a tax break at five hundred thousand dollars. Q23. Give a flat tax credit that is thesame percentage for all homeowners who pay mortgage interest, rather than the deduction that now gives a higher percentage for higher income people.
MID modifications are popular
Replace with flat tax creditCap the max mortgage at $500K
30% 26% 56%Total
Strongly Favor Somewhat Favor
36% 27% 63%Total
Strongly Favor Somewhat Favor
Replace with flat tax creditCap the max mortgage at $500K
32%
30%
25%
26%
57%
56%
<$25K31% 26% 57%<$25K
36%
29%
24%
30%
60%
59%
$50K‐$75K
$25K‐$50K
44%
39%
21%
34%
65%
73%
$50K‐$75K
$25K‐$50K
24% 28% 52%
$
$75K‐$100K
31%
37%
20%
28%
51%
65%
$100K
$75K‐$100K
23% 20% 43%
0% 50% 100%
$100K+31% 20% 51%
0% 50% 100%
$100K
Now I’m going to read you some proposals people have made for changing the mortgage interest deduction Please tell me if you
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Now I m going to read you some proposals people have made for changing the mortgage interest deduction. Please tell me if youfavor or oppose each proposal. (WAIT FOR RESPONSE) Is that strongly or somewhat? (RANDOMIZE Q22‐Q23) Q22. Cap the maximum mortgage for which someone can get a tax break at five hundred thousand dollars. Q23. Give a flat tax credit that is thesame percentage for all homeowners who pay mortgage interest, rather than the deduction that now gives a higher percentage for higher income people.
MID modifications are popular
Replace with flat tax creditCap the max mortgage at $500K
26% 30% 56%T t l
Strongly Favor Somewhat Favor
27% 36% 63%T t l
Strongly Favor Somewhat Favor
Replace with flat tax creditCap the max mortgage at $500K
31%
26%
22%
30%
53%
56%
Democrat
Total
40%
27%
28%
36%
68%
63%
Democrat
Total
30%
31%
25%
22%
55%
53%
Republican
Democrat
32%
40%
29%
28%
61%
68%
Republican
Democrat
30% 29% 59%Independent
p
36% 27% 63%Independent
0% 50% 100%0% 50% 100%
Now I’m going to read you some proposals people have made for changing the mortgage interest deduction. Please tell me if you
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favor or oppose each proposal. (WAIT FOR RESPONSE) Is that strongly or somewhat? (RANDOMIZE Q22‐Q23) Q22. Cap the maximum mortgage for which someone can get a tax break at five hundred thousand dollars. Q23. Give a flat tax credit that is thesame percentage for all homeowners who pay mortgage interest, rather than the deduction that now gives a higher percentage for higher income people.
Reasons to modify the MID% saying "very good"
60%
y g y g
The government should stop subsidizing million dollar houses and use the money it saves in ways that help low and middle‐
income people
First
59%These changes would cut taxes for most low and moderate income homeowners with mortgages, putting more money
in their pockets and helping the economy
Tier
48%These changes would save the federal government between
$20 billion and $40 billion a year
Secon
46%Higher income homeowners will be paying their fair share, rather than getting a bigger tax break for buying more
expensive things
nd Tier
0% 50% 100%For each, please tell me if you think this is a VERY GOOD, SOMEWHAT GOOD, NOT VERY GOOD, or POOR reason to change the mortgage interest deduction. RANDOMIZE Q24 – Q30. Q26. These changes would save the federal government would between 20
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g g g gbillion dollars and 40 billion dollars a year. Q27. These changes would cut taxes for most low and moderate income homeowners with mortgages, putting more money in their pockets and helping the economy. Q28. The government should stop subsidizing million dollar houses and use the money it saves in ways that help low and middle‐income people. Q30. Higher income homeowners will be paying their fair share, rather than getting a bigger tax break for buying a more expensive house.
Reasons to modify the MID% saying "very good"
41%
y g y g
Almost all homeowners with mortgages would get a tax break, rather than just the 52% of mortgage holders who have income high enough to benefit from the currenthave income high enough to benefit from the current
deduction
Thir
38%Most high‐income homeowners with mortgages would pay more in taxes
rdTier
30%We cannot afford to keep the mortgage deduction the way it is now because it costs the federal government over $100
billi
0% 50% 100%
billion a year
For each, please tell me if you think this is a VERY GOOD, SOMEWHAT GOOD, NOT VERY GOOD, or POOR reason to change the
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mortgage interest deduction. RANDOMIZE Q24 – Q30. Q24. Almost all homeowners with mortgages would get a tax break, rather than just the 52% of mortgage‐holders who have incomes high enough to benefit from the current deduction. Q25. Most high‐income homeowners with mortgages would pay more in taxes. Q29. We cannot afford to keep the mortgage deduction the way it is now because it costs the federal government over 100 billion dollars a year.
Funding low‐income rental h ihousing programs
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Support for building and rehabbing homes, and expanding rent assistance programs
15%15% 37% 32%30% 69%
Build new or rehab existing h l ‐15%‐15% 37% 32%30% 69%homes so low‐income people
can afford to rent Oppose somewhatOppose StronglyFavor StronglyFavor SomewhatExpand existing
programs helping‐18%‐22% 28% 31%40% 59%
programs helping low‐income
families pay rent
‐100% ‐50% 0% 50% 100%
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I’m going to read you some proposals people have made to address the need for affordable housing. Please tell me if you favor or oppose each proposal. (WAIT FOR RESPONSE) Is that strongly or somewhat? (RANDOMIZE Q19‐20); Q19. Expand the existing federal program that helps low‐income families pay their rent; Q20. Expanding a federal government program to build new or rehab existing homes that low‐income people can afford to rent.
Expand the existing federal program that helps low‐income families pay their rent
‐22%‐18% 28% 31%40% 59%Total
‐6%‐16% 39% 37%22%Democrat76%
29%34% 15% 22%63% 37%RepublicanOppose Somewhat
‐29%‐34% 15% 22%63% 37%Republican Oppose Strongly
Favor Strongly
Favor Somewhat‐21%‐23% 23% 38%44% 61%
100% 50% 0% 50% 100%
Independent
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‐100% ‐50% 0% 50% 100%
Please tell me if you favor or oppose each proposal. (WAIT FOR RESPONSE) Is that strongly or somewhat? (RANDOMIZE Q19‐20); Q19. Expand the existing federal program that helps low‐income families pay their rent
Build new or rehab existing homes that low‐income people can afford to rent
‐15%‐15% 37% 32%30% 69%Total
‐6%‐8% 49% 37%14% 86%Democrat
‐26%‐20% 24% 30%46% 54%Republican Oppose StronglyOppose Somewhat
‐17%‐20% 32% 31%37% 63%Independent
pp g yFavor StronglyFavor Somewhat
‐100% ‐50% 0% 50% 100%
p
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I’m going to read you some proposals people have made to address the need for affordable housing. Please tell me if you favor or oppose each proposal. (WAIT FOR RESPONSE) Is that strongly or somewhat? (RANDOMIZE Q19‐20); Q20. Expanding a federal government program to build new or rehab existing homes that low‐income people can afford to rent.
Expand the existing federal program that helps low‐income families pay their rent
‐18%‐22% 28% 31%40% 59%Total
‐22%‐28% 18% 31%50% 49%White
Oppose Strongly
Favor Strongly
Oppose Somewhat
7%7% 61% 25%14% 86%Black
Favor Somewhat
‐7%‐7% 61% 25%14% 86%Black
‐9%‐10% 44% 35%19% 79%
100% 50% 0% 50% 100%
Latino
20
‐100% ‐50% 0% 50% 100%Please tell me if you favor or oppose each proposal. (WAIT FOR RESPONSE) Is that strongly or somewhat? (RANDOMIZE Q19‐20); Q19. Expand the existing federal program that helps low‐income families pay their rent
Build new or rehab existing homes so low‐income people can afford to rent
‐15%‐15% 32% 37%31% 68%Total
O S h t
‐18%‐19% 27% 35%37% 62%WhiteOppose StronglyFavor Strongly
S h
Oppose Somewhat
‐6%‐5% 69% 20%11% 89%Black
Favor Somewhat
‐6%‐10% 55% 28%‐16% 83%Latino
‐100% ‐50% 0% 50% 100%
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Please tell me if you favor or oppose each proposal. (WAIT FOR RESPONSE) Is that strongly or somewhat? (RANDOMIZE Q19‐20); Q20. Expanding a federal government program to build new or rehab existing homes that low‐income people can afford to rent.
Top High
How to spend the savings from changing the MID
73%80%
90%
100%
p g
39% 36%31%
73% 71%63% 62%
50%42%50%
60%
70%
80%
3 % 35%
31% 36%28%
23%
42%
20%
30%
40%
50%
34% 35% 32% 26% 22% 19%0%
10%
20%
Help create Reduce the End Cut taxes for Build new or Expand rental jobs for low‐income people
federal deficit homelessness in the U.S.
middle income people
rehab existing homes
assistance
If the federal government did save between twenty billion and forty billion dollars a year by modifying the mortgage interestdeduction, please indicate how high a priority each of the following would be for you personally as a way to use the money saved:
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, p g p y g y p y y ytop priority, high priority, middle priority, low priority or not at all a priority. RANDOMIZE Q33‐38; Q33. Reduce the federal deficit; Q34. End homelessness in the United States; Q35. Cut taxes for middle income people; Q36. Expand the existing federal programthat helps low‐income families pay their rent; Q37. Build new or rehab existing homes that low‐income people can afford to rent;Q38. Help create jobs for low‐income people
Support for spending the savings from changing the MID on ending homelessness in the U.S.
32% 31% 63%Total
Top High
34%
44%
37%
36%
71%
80%
Mod/Lib Dem
Cons. Dem
26%
34%
20%
37%
46%
71%
Cons. Rep
Mod/Lib Dem
30%
35%
32%
31%
62%
66%
Cons. Ind.
Mod/Lib Rep
28% 29% 57%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Mod/Lib Ind.
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If the federal government did save between twenty billion and forty billion dollars a year by modifying the mortgage interestdeduction, please indicate how high a priority each of the following would be for you personally as a way to use the money saved: top priority, high priority, middle priority, low priority or not at all a priority. RANDOMIZE Q33‐38; Q34. End homelessness in the United States;
Support for spending the savings from changing the MID on ending homelessness in the U.S.
32% 31% 63%T t l
Top High
29%
32%
27%
31%
56%
63%
Whit
Total
51%
29%
34%
27%
85%
56%
Black
White
36%
51%
42%
34%
78%
85%
Latino
Black
36% 42% 78%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Latino
24
If the federal government did save between twenty billion and forty billion dollars a year by modifying the mortgage interestdeduction, please indicate how high a priority each of the following would be for you personally as a way to use the money saved: top priority, high priority, middle priority, low priority or not at all a priority. RANDOMIZE Q33‐38; Q34. End homelessness in the United States;
About BRS
B ld R ll S i d bli d kBelden Russonello Strategists conducts public and key audience opinion research and provides research‐based message development and communications consulting.
Since 1982, BRS has helped non‐profits, political campaigns, news media and other clients understand the relationships between issues and motivations for action – whether it isbetween issues and motivations for action whether it is rethinking policy, attracting new members, or changing attitudes and behavior.
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Contact InformationContact Information
John RussonelloJohn [email protected]
1320 ‐ 19th Street, Suite 620Washington, DC 20036
202.822.6090
Opinion Research ■ Strategic Communication