Housing industry leaders are maintaining close ties with other groups seeking to protect their tax deductions targeted in deficit-reduction talks.
The National Association of Home Builders is keeping in close contact with nonprofits and other groups that want to save tax breaks for itemized deductions, including charitable giving and mortgage interest.
The groups similarly argue that changes, such as caps, on the deductions would severely affect economic growth by dampening interest in home purchases and reducing donations that would most profoundly affect those who benefit from services.
Jerry Howard, head of the National Association of Home Builders, said making any changes to the mortgage interest deduction in a year-end deal would have unintended consequences on a housing market that is sparking back to life.
“It’s a ludicrous concept,” Howard told The Hill.