Byron Dorgan: “I understand this proposal to terminate the tax code has been ricocheting around for some long while. The Tax Executives…”

“I understand this proposal to terminate the tax code has been ricocheting around for some long while. The Tax Executives Institute says it best. This is a good sound bite, but it is a poor excuse for good policy. Don't take it from me, take it from American corporations and taxpayers who need certainty. Those who want to terminate the entire Internal Revenue Code in this manner risk creating financial trouble for millions of homeowners. Nearly thirty million homeowners who would ask you: If you want to get rid of the current Tax Code, what are your intentions with respect to the tax deductibility of my home mortgage interest? Do you intend to keep that? If not, why not? What do you say to folks who have invested in a home and whose home values will now drop because this proposal would abolish the deductibility of home mortgage interest? If this extreme measure is enacted, future home buyers would likely find it more difficult to purchase a new home and realize the American Dream of home ownership. This is because, in addition to losing the tax deduction, such a move would surely result in great uncertainty for our financial markets, lead to higher interest rates, and otherwise increase the costs of purchasing a new home--already the largest single financial investment for most families.”