Real Estate, Private Equity Industries Fighting Camp's Tax Plan - removal of mortgage deduction and carried interest

"Disappointing." That's how both the National Association of Realtors and the Private Equity Growth Capital Council have described Rep. Dave Camp's (R-Mich.) proposal to overhaul the tax code.

In his quest to simplify the code for families, Camp, chairman of the powerful Ways and Means Committee, would trim some longstanding perks benefiting the real estate and private equity and investment industries: the mortgage interest and carried interest deductions. A tribe of lobbyists is pressing conservatives to snuff Camp's proposal, threatening to withhold precious campaign dollars.

The mortgage interest deduction allows homeowners to reduce their tax obligation by subtracting the interest they've paid on their mortgage. Tampering with it could hurt home sales, and thus the bottom line of real estate agents and the many others who depend on the housing market for their livelihoods.

Cuts to the carried interest deduction, which allows private equity managers to pay a lower tax rate than other workers on about one-third of their income, would only affect a tiny -- but generally very wealthy -- proportion of the population.

In both instances, those who would feel the pain have long experience using cash and K Street to make themselves heard.

Private equity contributions skyrocketed to $70.8 million in 2012, up 143 percent from the previous presidential cycle.

The industry gave to both parties, but favored Republicans at a two-to-one rate. PEGCC, the trade group of private equity firms, contributed $300,000, more evenly split between the parties.

rest at http://www.opensecrets.org/news/2014/02/real-estate-private-equity-industries-fighting-camps-tax-plan.html?utm_source=CRP+Mail+List&utm_campaign=fb62185740-Newsletter_3_6_20143_5_2014&utm_medium=email&utm_term=0_9df8578d78-fb62185740-210736669