Breakdown of Super Committee Deficit Talks Leaves
RV Loan Interest Deduction in Place for Now

The Congressional super committee charged with negotiating a deficit reduction proposal adjourned this week without coming up with a recommendation to the U.S. House and Senate.  That means the second home mortgage interest deduction which applies to the vast majority of RV loans remains intact, at least for now.

Many RVDA and RVIA members mobilized last week to let Congress know that eliminating the RV loan interest deduction could slow down the industry’s recovery and have a negative effect on American jobs.

The failure of the committee, which was made up of six Democrats and six Republicans from the House and Senate, sets in motion an automatic $1.2 trillion in spending reductions that will begin in January 2013.

In an e-mail to RVDA President Mike Molino, Indiana Congressman Joe Donnelly said he was disappointed but not surprised that the super committee could not agree on a deficit reduction plan that would have a positive impact on job growth.  "Members of Congress should be solely focused on creating jobs, growing our economy, and reducing the deficit," Donnelly said.

Leaders on both sides of the aisle are unhappy with the automatic cuts, which reduce spending in domestic and defense programs.  Social Security, Medicaid, food stamps, and veterans' benefits are not included in the automatic cuts.

"This process did not end in the desired outcome, but it did bring our enormous fiscal challenges into greater focus," said House Speaker John Boehner.