Did you know U.S. home owners already pay 80% to 90% of all federal income tax collected? And now the government wants more. Rather than curbing wasteful spending, some policymakers want Americans to part with deductions like property taxes and mortgage interest—a perk of home ownership for more than 80 years. With Tax Day right around the corner, now’s the perfect time to determine just what the MID means to your family. Take a look at your federal tax form Schedule A (if you are filing tax form 1040) and see line 10. That line shows the deduction for your home mortgage interest—$12,200 on average, translating to a total savings of $3,050 for the typical U.S. home owner.
Loss of the MID would have serious implications for American families. Saving the average household over $3,000 per year, the MID means: 1.) A year’s worth of groceries for two people: $2,694 on average. 2.) Household utilities for a year (heating, cooling, fuels and public services): $3,477 on average. 3.) 12 months of car payments for the average family: $3,269. 3.) The average family’s annual entertainment expenses: $2,698. 4.) Your family’s health care for a year: average expense of $2,853. (Figures based on a 2009 U.S. Department of Labor 2009 Labor Statistics Report Matt Domic, 4/15/11).