support for reforming the mortgage interest deduction · this is called the mortgage interest...

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

7

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 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

8

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


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.



30% 26% 56%Total

Strongly Favor Somewhat Favor

36% 27% 63%Total



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.



26% 30% 56%T t l


27% 36% 63%T t l



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

18

‐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

19

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.

23

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

support for reforming the mortgage interest deduction · this is called the mortgage interest...

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