The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-01-29
Lift Mortgage Tax on
Homes, Urges Expert
On Housing Problem

tinue unless the income TAX laws are
so modified that investors will feel
justified in again putting their funds
into mortgages. They surely cannot
be expected to leave their money In
highly taxed mortgages or make new
are many other perfectly safe securi-
ties which will pay twice as much
because OF tax exemption.
Holders OF mortgages in large
sums, and estates, formerly heavy
investors in such securities. are call
Ing these loans as rapidly as they
come due. often to the serious incon-
Venience of the property owners
Many OF our largest real estate own
ers are selling their holdings and re-
curing payment in full in cash. The
money needed to pay all cash for
which are not so heavily taxed or
are practically tax exempt. This re-
moves from the mortgage market just
so much money that could have been
used for the production OF new build =
ings.
WAY TO REGAIN FUNDS.
ct is, therefore, imperative that
the funds of individual investors and
estates be induced to return to the
mortgage market IL we are to have
any resumption of building that will
begin to relieve the present serious
situation. Commissions and commit
tees may meet and resolve and report
and suggest, but this does not pro-
duce housing.
I'VE have four years of nearly total
cessation of building to make up, ana
we cannot make 1t up and we can
never catch up unless we go at II
with unusual vigor. But we cannot
go at 1t unless we have the usual
funds for mortgages. and these funds
cannot be had unless there is Keller
from income tax requirements on
mortgage interest until the shortage
Is greatly relieved. Then. too. we
must remember that il requires fully
twice as much money to build now as
1t did four years ago, and we have a
vastly smaller sum to use for a vastly
larger need.
How can this situation be i'm
proved? And what will bring these
vanishing funds back into real estate
loans? Manifestly, by relieving this
best OF all investment from income
taxes for a period of years long
enough to enable us to build what we
cannot get without this relief. There
have been introduced in Congress and
the New York State legislature sew
eral bills the purpose OF which Is to
relieve income derived from morat-
cages not exceeding $4,000 on one
owners hands from income tax. This
would surely be n great help, but
think the limit Is set too low.
FAvORs' MORTGAGE EXEMPTION.
81 would favor the exemption from
income tax Of all interest on mort
cages for a period of Ave years, by
which time we should be again In
normal condition and our people sc
well supplied with houses that the
fear of lack OF shelter and exorbitani
rents would be removed. l have nc
doubt the reply to this or any pro-
posal for relief from taxation will b.
that the government needs the
money or such a plan would be dis
elimination etc.
"The income tax law was enacted
because of needs created by the war
this housing situation was created
by the war-the entire population in
cities and towns who are not home
owners are suffering because of high
rents brought about largely by
housing shortage. Such persons are
doubly hurt, for besides the income