How This Impacts Mobility
Deductibility of mortgage interest has long been perceived as an important stimulus for homeownership. As the U.S. strives for economic recovery, changes that reduce affordability of real estate are contrary to that goal. Worldwide ERC® members are affected by changes to mortgage interest deductions. The proposed change would have increased taxes for many higher-income California employees, with consequent impacts of gross-up calculations for their employers and caused potential difficulties in transferring employees to the state.