The national housing market is still healing from the last major recession that the U.S. had and political debates are going on in the nation’s capital about limits and deductions for taxpayers. One of these topics is the mortgage interest deduction or the MID which is a tax break that Jeff Hammerberg, Founding CEO of GayRealEstate.com say helps mold the dynamics for an improving American housing market and a stronger economy. The MID makes it easier for carrying the costs of owning a home. The middle and lower income families are the ones that benefit the most from the mortgage housing deduction..

Congress is trying to find any means that are available to find extra sources of revenue to help with reducing costs to allow consensus on raising the debt ceiling. The mortgage housing deduction has come up for specific legislation, capping or eliminating the MID all together. (Sixty-five percent of families that claim the MID make less than $100,000 a year) Federal taxes are primarily paid by homeowners and this number would rise if the MID is reduced or cut out altogether. All of these talks on Capitol Hill have many people wondering if the Mortgage Housing Interest Deduction is going away in 2013?.

The American dream is an old school ideology that is still very much alive today. Home values and sales will decrease without the MID. Some economists predict that the values could drop in the double digits in some circumstances. Changes in the MID which is an important home ownership benefit that many people have come to rely on would destroy the wealth buildup of millions of diligent middle-class families along with devastating their dreams of sending their kids to college, retirement or even perhaps starting a small business. The MID allows homeowners to deduct interest paid on a mortgage which in turn helps families save a significant amount of money they would have paid in taxes..

The National Association of Realtors (NAR) is the biggest advocate for saving the MID and has thus far been the biggest crusader against any legislation that would tamper with the program. Gay Realtor's have empathized over and over again to politicians how important the mortgage interest deduction is for both the economy and the housing market alike. All Realtor's have been long standing supporters of the MID and will continue to do so until congress introduces specific legislation. The crusade for real estate professionals will continue as they oppose any future plan that would amend the MID in any shape or form..

The mortgage interest deduction still applies for homeowners but it will continue to be a debate as all of the challenges of the 2013 move in, the fiscal cliff is really just the tip of the ice berg, with the debt ceiling debate coming next..

Advocates will continue to support the MID as a benchmark for the American Dream and a valuable platform for the middle-class as opponents wage a war against capping or eliminating the MID altogether..

No one can predict what shape the tax reforms of 2013 will bring but it is predictable that the MID reduction or elimination will have a negative effect on home values if the Mortgage Housing Interest Deduction disappears in 2013. All eyes will be on Capitol Hill as this debate continues to spark between the Congress and the White House..

Author Jeff Hammerberg is the Founding CEO of http://www.GayRealEstate.com. Free Instant Access to the Nation's Top Gay, Lesbian and Gay Friendly Realtors Coast to Coast. FREE Buyers Representation ~ Free Relocation Kit to any City, USA ~ Free Sellers Market Analysis for home sellers..