Congressman Jared Polis, who will likely represent the people of Larimer County in January when the county becomes part of the 2nd Congressional District, met with the leadership of the Fort Collins Board of Realtors® and the Loveland-Berthoud Association of Realtors®. He said he would cosponsor a bill supported by NAR that would extend debt relief to the estimated 20 percent of this country’s property owners who owe more on their mortgages than their home’s current fair market value.
Congressman Polis touched on other issues of local interest during a Q&A session, saying he would be happy to help facilitate the Northern Integrated Supply Project (NISP). He also said he supports a five-year authorization of a transportation bill to give communities more certainty when it comes to transportation funding in reference to a question about funding for I-25 improvements.
The impending “fiscal cliff*” and its potential impact on real estate was a topic about which Congressman Polis spoke at length. He says that our country’s debt must be tamed or interest rates will rise. Therefore, he continues to assert it in is the real estate industry’s best interest to support some kind of budget reductions that could include revisions to the mortgage interest deduction as part of a broad-based program to “share the pain.”
*The phrase fiscal cliff refers to a predicted significant reduction in the budget deficit and corresponding slowing of the economy if specific laws are allowed to automatically expire or go into effect at the end of 2012. These include tax increases due to the expiration of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 and the spending reductions (“sequestrations”) under the Budget Control Act of 2011.
Under current law, which mandates these tax increases and spending cuts, the deficit for 2013 is projected to be reduced by roughly half, with the cumulative deficit over the next ten years to be lowered by as much as $7.1 trillion. However, it is also projected to cause a double-dip recession in the first half of 2013. Taxes will increase by $2,200 for an average family. So far Congressional leaders have not reached any sort of compromise to avert this economic catastrophe.