Tuesday, November 20, 2018

2019-2021: Oregon's Tax Expenditure for Mortgage Interest Deduction Would Need to Decline by $603 MILLION to Match the Recent Projected Rate of Federal Decline.

FY 2017-FY 2018: The Federal MID Tax Expenditure Was Projected to be Reduced by 55%/$46 Billion. 
The US Treasury has projected that the federal tax expenditure for the mortgage interest deduction declined from $83.1 BILLION in FY 2017 to $37.16 BILLION in FY 2018, a reduction of 55%/$45.94 BILLION. 

Oregon's 2019-2021 MID Tax Expenditure Would Need to Decline by $603 MILLION ($301 million+ per year) to Match the FY 2017-FY2018 Rate of Federal Decline in MID Tax Expenditures. 
  • The most recent (Dec 2016) Oregon Tax Expenditure report projected that the 2017-2019 Oregon tax expenditure for the mortgage interest deduction would be $1.0962 BILLION. 
  • To match the recent FY 2017-2018 55% rate of decline in tax expenditures for the federal mortgage interest deduction the 2019-2021 Oregon mortgage interest deduction tax expenditure would need to decline to $476.6 MILLION, a decline of $602.9 MILLION ($301+ Million per year).  
  • The new Oregon Tax Expenditure report will be out by the end of the month. It will be interesting to see how the projected Oregon MID tax expenditure for 2019-2021 differs from the projected rate of decline at the federal level. 

Originally created and posted on the Oregon Housing Blog

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