Scrap the mortgage deduction? Americans weigh in

August 10, 2011

Paul Hennings and his wife Sheila Krueger pose poolside in the backyard of their newly purchased home in Phoenix, Arizona December 11, 2010.  REUTERS/Joshua LottWhat if the United States got rid of or changed the home mortgage interest deduction in the next round of tax reform?

For decades, that deduction has been considered sacrosanct, but as we move closer to tax reform in an era of budget cuts, ideas have been percolating to change or eliminate it.

Economists and tax analysts have long criticized the deduction — which permits American homeowners to deduct the interest on up to $1.1 million in debt — on both fairness and efficiency, but it was believed to be too entrenched in the tax code and the American psyche to change.

The double-whammy of the deficit and the bursting of the housing bubble have put the mortgage interest deduction in play, and a recent proposal by the Congressional “Gang of Six” is among those that have considered reducing it.

With that in mind, Reuters Money asked average Americans — along with a few financial advisers — what they think. We talked to homeowners and renters, those who’ve paid off their mortgages and those who are sinking under their weight, folks who live in expensive markets like New York and San Francisco and those who live in areas where housing remains cheap.

Their responses, by email and in phone conversations, were illuminating and sometimes surprising. Roughly half of those in our wholly unscientific survey supported keeping the deduction as-is; but the other half called for reducing, capping, changing or eliminating it.

What do you think? Have your say:

[poll id=”30″]

Scott Peterson, 56, says that that although he personally benefits from the deduction — he and his wife own a home in Vienna, Virginia — he would support limiting or changing it in order to get the country on firmer financial footing. “I don’t like that so much of what is proposed to put the budget toward balance falls on the weak and the poor and the sick because they don’t have lobbyists and they don’t have help,” says Peterson, the co-owner of Relay Station Social Media. “I think we all have to chip in.”

Further south, Monica Luck, 46, argues forcefully for keeping the home mortgage deduction. Luck, who is divorced and bought her home in the Atlanta suburb of Chamblee for around $200,000, says that to take away the deduction would be unfair to those who’ve bought and fixed up their homes already. “You’re talking about whopping people who are trying to do the right thing,” says Luck, a client services manager at LexisNexis. “I think you’d be punishing the people who are doing most of the working, living and dying in the community … It’d be a big, fat tax increase, and I’d be furious.”

Randall Ringer, co-founder of branding firm Verse Group in New York, compares the idea of taking away the home-mortgage deduction to what happened when the deduction for interest on student loans was eliminated by the 1986 tax reform. (It has since been reinstated.). He recalls how he took on debt to pay for school on the assumption that it would always be tax-deductible. “After I graduated, wham, they took away the tax deduction. It felt like a bait-and-switch scheme,” says Ringer, who used to own and now rents. “It’s beginning to sound like they want to do the same thing with home ownership.”

Supporters of the home mortgage interest deduction believe that it helps to increase home ownership, and, therefore, has a positive impact on the overall economy and the stability of those communities in which home ownership is higher. Critics, including many economists and tax wonks, argue that it’s complex, inefficient and unfair. It gives the biggest tax breaks to the highest earners who borrow the most money to buy the most expensive homes. And that incentive to borrow more because of the tax benefits may have been a factor in the recent housing bubble.

About 35 million households claimed the deduction — which is only permitted to those who itemize on their tax returns — in 2009, according to the Joint Committee on Taxation. The average benefit to a middle-income taxpayer (making $50,000 to $75,000 a year) is $1,227, while the average benefit for a high-income taxpayer (above $200,000) is $6,650, according to the Joint Committee on Taxation.

Elizabeth Kopras, who owns a farmhouse in Morning View, Kentucky, where she lives with her husband, daughter, two dogs, a cat and a horse, argues that the deduction should be eliminated. Most everyone she knows, she says, bought their homes for $200,000 or less, and will never have enough writeoffs to exceed the $11,400 standard deduction for married couples. “People like me were told to upgrade and get a tax deduction,” says the 45-year-old, who works as a junior research associate in the department of environmental health at the University of Cincinnati. “I believe that all of this was marketed to artificially pump up the price of houses … I believe that the interest tax deduction does not benefit most Americans.”

Kristen Fife, a 45-year-old recruiter in Seattle, similarly thinks the country would be better off with the deduction. A renter who says she’ll likely never own, Fife argues that the mortgage interest deduction has helped fuel a consumerist society, in which people buy larger homes than they need with big loans because of the government assistance.

“Canada does not have the same incentives for buying,” Fife says. “People still buy homes there, especially families.” If you wanted to offer homeowners incentives, why would you do it as a tax break on the mortgage, she asks. “I would rather see help for people making down payments because that is the biggest obstacle to home ownership, and maybe some assistance for those who are making an improvement in their communities,” she says. “The size of the American family has gotten smaller, and the size of our houses has gotten larger. I know a couple in Seattle with a 7,000-square-foot house, and they live off their boat in the summer. Why should the government help them live that way?”

Jared Sharpe, who lived in Greenfield, Massachusetts, with his fiancee and their two dogs, says the mortgage interest deduction helped him to afford his home, which cost $170,000, and he expects that’s been the case for many young couples. However, he says, he’d support capping the deduction at $500,000 and limiting it to a taxpayer’s primary residence, as was proposed by the presidential budget commission last year. “I think that carving it up any more than that would really crimp middle-class homeowners in the midst of a very precarious economy,” he says, adding that funds to cut the deficit could come instead from ending the wars and allowing the Bush tax cuts to expire.

Lisa Phifer, 51, who lives with her partner in a Downington, Pennsylvania, home on which the mortgage is fully paid off, also argues that other tax issues — such as the lower capital gains rate — should be changed before the mortgage interest deduction. “My perspective is more about what is right and fair,” she says. She would, however, support limiting the deduction to an amount lower than $1.1 million. If the deduction were eliminated and she were considering whether to rent or buy, she says, she’d likely factor that in and buy a less expensive home. “If there’s one thing this economy has taught me, it’s not to spend more than I have on real estate that could well lose value.”

Whatever average Americans think, the deduction has powerful lobbies working on its behalf: The National Association of Realtors and the Mortgage Bankers Association have argued that the repeal of the mortgage interest deduction would lower housing prices and hurt homeowners at an already precarious time. And it’s not easy to figure out what the impact of changing or reducing the deduction would be on housing prices or homeowner behavior.

This is likely to be an ongoing long-term discussion — both what should happen and how. At a recent panel on the mortgage interest deduction, sponsored by the Urban-Brookings Tax Policy Center and the Reason Foundation, there was much discussion not just of what the policy should be — whether to lower the cap, for example, or to replace the deduction with a credit — but of how to make any change occur over a long enough period of time so as not to harm those who benefit from the current policy at a time of economic uncertainty.

The costs to the government of paying for the deduction, however, are so high that Dean Stansel, an adjunct fellow at the Reason Foundation, argues that if you got rid of it, you could lower federal tax rates across the board by 8 percent. As he told the panel in late-July: “Getting rid of it would be beneficial to the economy and to most taxpayers under $100,000.”


34 comments

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Ho hum, another bandaid for the massively bleeding economy. We should institute a flat tax or national sales tax without an income tax. All these little tweaks are just showmanship.

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Corky Teager | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Team Golden Homes | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] webmaster@technorati.com wrote an interesting post today onHere’s a quick excerpt […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | TK Real Estate | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Mary Dobson | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Alicia L. Terry Real Estate | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Doug Williams | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | John Messer | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Laura Papritz | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Jim Willner | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

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[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Mark Yang | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Jason Woodward | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Beth Leonardo | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Rich Bianchi Team | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Joe Fitzpatrick | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Michelle Shafagh | Report as abusive

I just bought my first house, in California. At a reasonable $165,000 with 25% down, I don’t even qualify for the mortgage deduction. Because it’s a deduction, not a credit, your interest each year has to surpass the standard deduction. So you either have to buy a large, expensive home, have a second home that you also deduct, or itemize various deductions that only the upper-middle class are able to afford. Why should ultra-wealthy people be able to deduct up to $1.1 MILLION in mortgage interest, including second homes — while responsible people like me, who buy only as much home as they need, are out of luck??? The only way I’d support the deduction is if it was capped MUCH lower, and changed into a credit so that even working-class people like me could benefit from it. As it is, it’s just another tax loophole for the wealthiest Americans.

Posted by psych1 | Report as abusive

And another thing: why is it the INTEREST that’s deducted? I thought the deduction was supposed to encourage people to buy homes. What it really does is encourages people to borrow money at high interest rates to pay for the homes, rather than putting as much money down as they can. Who wins in this situation, except for the banks? Certainly not the people who save up money for a down payment. They’re punished for not borrowing more.

Posted by psych1 | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Why John L. Scott Mukilteo | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Albie Moshcatel | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Warring Properties | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Hoady Spencer | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Todd Brandt | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Dan Bennett | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Luxury Log Home Riverfront Paradise | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Heidi Davalos | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | John Hartman | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Mike Malone | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Melissa Riley | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Sharon Giampietro | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by Clean Brothers:What will become of the mortgage interest deduction | Clean Brothers | Window Gutter Carpet Roof Cleaner | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Sandy Meyer | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Om3 Resource | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Pam Ratcliffe | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Real Estate Search | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Susan Krueger | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Sherri Bannister | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Amy Sprague and Adele Piro | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Stacey Cross | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Johna Beall Real Estate | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | craig forehand | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Casey Muldoon | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Lisa Dusapin | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | dan gunderson | Report as abusive

The mortgage tax deduction creates an artificial demand for housing. Anyone who knows basic economics, knows that subsidies create excess demand. The home buyer pays for this with higher mortgage interest rates and higher house prices. The winner is the mortgage loan companies and mortgage backed securities holders, not the homeowner.

Phase out the deduction, which is really a holdover from when all consumer interest was deductible. Congress, in keeping this subsidy created the housing bubble, by making people think their house was a financial instrument.

Posted by jrg | Report as abusive

Classic government “attack the middle class” mentality. Scrap this deduction and a very large number of middle class homeowners will immediately be in a negative cash flow situation. You think the housing secotr is in trouble now, just think about doubling the number of mortgage defaults.

As an alternative,cap it at something reasonable, say $15,000 and the damage will be managable. Cap it and make it an interest deduction so non-homeowners also have the ability to deduct interest and you have a much more fare tax code, but it would probably decrease total tax collections.

I’m getting vey fed up with government policies and “expert” opinions that attack those of us who didn’t borrow too much, who didn’t buy all the toys, the electronic gizmos, the expensive vacations. And I’m disgusted with the 40 year history of policies by both parties to destroy the middle class.

The correct answer to solving this mess is to begin by voting every politician out of office, and creatign a new politival party that represents the interests of those of us who are not extremists.

Posted by dhiorth | Report as abusive

While I think the mortgage deduction is wrong, once again the tax burden is shifted more and more on the middle class. Since the 1980s the US government has been nothing more than a machine to skim, no, gouge the middle class.

The deduction should be phased out eventually since what it really does is inflate property values and commissions and fees of real estate agents and bankers.

Posted by TheFladaboscan | Report as abusive

There must be a way to compromise on this. As above, it can be phased out, capped, limited to one house, etc. Current users can be grandfathered with a phase out over the decade under negotiation by Congress.

Posted by Bartolo | Report as abusive

49 % of ALL Americans pay absolutely NO income tax! That’s not equitable to we struggling so-called “Middle-Class” (lower middle-class?) tax-payers!!!

Have a “FLAT TAX & a VAT”!

Make EVERYBODY pay, including companies like “General Electric”!!!

We’re tired of getting the “Financial shaft!”

Posted by Middleclassman | Report as abusive

The mortgage interest deduction is one of the decision making factors for many people in choosing to rent or purchase property, especially where the land is common, or non-existent (i.e.townhouses). Removing this advantage will likely shift the market more towards rentals, as we see in Canada and Europe.

Short-term, this will flood the market with even more real estate, sold eventually at a discount to rental management companies. Long-term, this undermines the basis of collateral upon which many small businesses are built. Home-equity loans are the number one financing tool for Americans wanting to get a loan to open a business, put a kid through school, or leverage their worth.

Mortgage interest could be phased out, but only if there were an alternative plan for the banking industry. Read James Martin, The Meaning of the 21st Century, chapter “Destitute Nations” re: the impact of the inability to secure real estate on the development, and the leverage of capital in these countries. And the first step to buying your first commercial real-estate? A home equity loan.

Posted by veram | Report as abusive

Outlaw any deduction for second homes. Also completely cut the deduction for boats, RV’s and so forth. Only allow a deduction for 2x the median household income in the USA averaged over the previous 3 years.

This should all be phased in over 3 or 5 years with grandfathering of everything other than “jumbo” loans. Also no residing in corporate property for owners of more than 2% of an organizations voting shares and permitting that organization to deduct mortgage expenses on that property.

In Europe, property taxes are severely limited on homesteads, with a cap on values permitted. We should consider his too.

Posted by txgadfly | Report as abusive

Eliminate wage taxes (FICA, unemployment tax, workman’s compensation, etc. etc.) and merge that entire set of regressive anti-employment tax revenue with the Income Tax. This should be entirely revenue neutral. The entire scheme must be made either flat or progressive, not regressive. There should be a medical care charge attached to every product or service in the country, with a 50% credit for American source good and services. Who cares about “free trade”? We fought and lost. Time to move on.

Those who must leave the USA because they do not like supporting the American people should not be permitted to stay anyway. Good riddance! No military support for you either!

Posted by txgadfly | Report as abusive

I live in Hawaii where all real estate is expensive and I just qualified for my mortgage. If the mortgage tax deduction were taken away I would loose my home. I feel that those who bought homes when the deduction was in effect should be able to continue taking it. If the government wishes to reduce or eliminate that deduction for future home purchases then fine but that would also reduce home sales in higher priced markets.

Posted by koatree | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Tom Childers | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Susan Heller | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | G. G. Getz | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Suzy Albrecht & Eric Jackson | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Steve Hobson | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Rhonda Aflakian | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Best Seattle Real Estate Search Blog | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Rich Jones Real Estate | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Marti and Jeff Samuelson | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Tom Luehmann Real Estate | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Susan LeMaire | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Chris Weaver | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Mary Pat Minaglia | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Craig Hill | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Brian Elder | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Bob maple | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Beth Kovacevich | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Michael Joy | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Carrie Freeman | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Jack Mitchell | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Don Chase Mtg Blog | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Jennifer Reyer | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Ingalls Home Team | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Shane Blondin | Report as abusive

I keep saying I cannot figure out why our government is so set on killing the middle class. Then I realize that I cannot figure it out because it is not logical. Governments do not run like kitchen table economics they run similar to business. That is similar not the same. Austrian/Kensyian economics are theories and neither works total in practicum. Then I realize that our government has been bought and paid for by banking/finance and I then realize why our government is so set on killing the middle class.

Posted by NewsDebbie | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Stacy Rus | Report as abusive

Tax everyone appropriately (why do only 46% in the USvpay taxes?!). Terminate violent offenders who are proven without a doubt of the crime (including DNA)-there is no reason to keep using millions of dollars per violent criminal on appeal process.Eliminate pension plans for govt employees including lifelong pensions of hundreds of thousands per politician per year. Get people on welfare and social benefits to come out and volunteer at least one day a week rather than sitting at home and breeding or watching TV and drinking beer. And of course the wars! This will help the financial situation and not cutting another economic driver (i.e., mortgage deduction).

Posted by bharitka | Report as abusive

Until the debt from the Republican’s war on terrorism is paid, taxes should be raised substantially for anyone making over $50k per year.!!!!

Posted by jimh615 | Report as abusive

Due to amortization tables the deduction reduces every year for everyone anyway—so how would you phase it out? Stopping cold turkey will freeze up the housing market at a time when it is already partly paralysed.

Posted by dominickspez | Report as abusive

I am one of those taxpayers that benefit from the mortgage interest deduction. However, I agree that the deduction should be eliminated SO LONG AS ALL OTHER DEDUCTIONS ARE ELIMINATED. The government needs to wholly abandon using the tax code to advance special interests’ needs and simply utilize a flat or mostly flat tax, set no higher than 20%, and live within the means generated by that tax. No more farm subsidies, no gas subsidies…no subsidies at all. All the government does is distort the market, typically with more unintended consequences than intended. So, asking if we should eliminate the mortgage interest deduction in a vacuum is a meaningless exercise. The real question is: should the government stop trying to accomplish policy goals via the tax code? The answer to that is a resounding YES.

Posted by Welred | Report as abusive

I think the rationale behind tax reform should be equity. Mortgage interest is fine as a deduction as long as the Middle Class is not singled out. It needs to be coupled with ending corporate welfare and subsidies,having businesses which get the protection of the United States to pay their fair share, etc. If you “lay the tax” on one group you’ve ended fairness.
That will lead to trouble. As it is today, taxes are not equitable. Whether a combination of taxes which is equitable is the great question. Few countries in the world, if any have solved that problem. However, it appears to me that JUST ending the mortgage interest deduction hits the middle class hardest, especially those who are struggling to put food on the table. We, as a nation, have had preached to us for 80 years about the value of home ownership and having a stake in community. Now we’re being told that home ownership is no better than renting? Make up your mind.

Posted by neahkahnie | Report as abusive

The size of the loan on which an interest deduction is allowed should be capped, and no deduction should be allowed for RE other than a primary residence.

The deduction should be phased out gradually over 10-20 yrs, so prices adjust gradually. After 20 yrs of a 30-yr mtg, the interest portion is pretty small anyhow. And these days many people get 15-yr or adjustable mortgages.

Perhaps a tax credit for home buyers, as the Gang of Six suggested should be allowed initially, only because the housing mkt is still in such a slump; but gradually that should be phased out, too.

Like others’ ideas of nat’l sales tax. Don’t like the idea of voting out all incumbents–look what we get then, the crazy Tea Partiers. What we need is to get corporate and union money out of our politicians pockets. Campaigns need to be funded only by public funds or individuals, with limits on what an individual can contribute. I give Colbert credit for highlighting the bribery and corruption of our politicians that can result from Citizens United vs. FEC, and from the superPACs.

Posted by yogahelps2 | Report as abusive

This might have been a good idea 30 years ago, but even a gradual change with time would do added harm to a declining market. So given the loonacy of the idea, it is very likey to be introduced by the House of Representatives.

Posted by SanPa | Report as abusive

Tax breaks on interest payments amount to subsidies to the banks.
Although you think it saves you money, really the banks just squeeze you for a little bit more because they know the Government is giving you a helping hand. A really big chunk of the price of a house is paid for by the Government and why should home owners pay less tax than those to poor to own a house.

You would however have to remove the deductions gradually to prevent a housing price crash.

Australia tried to remove the tax breaks on investment properties years ago and the whole property market dropped over 20%. The Government reintroduced the tax breaks to stabilize the property market.

Posted by Sinbad1 | Report as abusive

When hedge fund managers pay taxes on what they make as compensation for services instead of “return on investment” I
will be happy to give up the advantage of writing off mortgage
interest on my little bungalow.
The revolution is coming. It is just a matter of time and the
nature of it.

Posted by propensity | Report as abusive

Continue subsidies to corporate farms, oil companies, tobacco companies, eliminate the home mortgage deduction, makes sense. What next, debtor prisons/

Posted by seattlesh | Report as abusive

This is just another attempt to make the middle class pay for a national debt incurred by the wealthy to benefit the wealthy. Entitlements didn’t drive up the debt, illegal wars and congressional pork did. Most people forget that under Clinton there was no debt.
How many middle class families depend on that deduction to stay in their homes? I work 60 hours a week, and haven’t had a raise in 4 years, and count on that deduction to put a roof overhead and feed my kids.
The middle class has no voice, no lobbying groups, to influence the direction of this country. We can’t buy politicians like the Fortune 500.
All this survey shows is that people who don’t need this deduction are willing to give it up.
As soon as the these rich SOBs volunteer to give up their Bush tax cuts, then I’ll surrender my mortgage deduction.

Posted by singledad | Report as abusive

As a transition, the deduction could be phased out. While intended to promote home ownership, it has distorted the market and contributed to inflationary mispricing promoted by the real estate industry and subsidized by renters. Like everything else in America, it just became a rigged game with little underlying value except for the get rich quick crowd.

Posted by Greenspan2 | Report as abusive

There should have been a don’t care choice.

But really, why couldn’t the tax process be as simple as “how much did you make?” (all the pluses and minuses with no limits on loss deduction). Subtract your exemption (which should allow the family tax free income to live at the poverty level, at least, if not more). What’s left? Here’s your tax. No more different classes of income, no deductions for you choosing to do x, y, or z. Pretty much How much did you make? Send it in.

Posted by majkmushrm | Report as abusive

max the mortgage deduction out for a 400k home.
limit it your first mortgage, on the primary residence.

Posted by beni_gabor | Report as abusive

Of COURSE this favoritism should be eliminated, being both economically counterproductive and deeply unfair to those who can’t or don’t happen to own homes. But it’s unfortunately so “baked into” the economy and society that ending it in one go would cause tremendous dislocations and pain among those who made homebuying decisions based on it. So just phase it out, say at 10% a year, and starting with a hard cap at maybe 250k.

Posted by ErikD | Report as abusive

Why not follow the Aussies and remove the interest deduction, but have a complete exemption from the capital gains tax for (one) principal residence (at a time), without the messy partial system that presently exists.

Posted by AussieYank | Report as abusive

wanna kill an already dead market? Let’s go the Bahamas then.. :)

Posted by robb1 | Report as abusive

The deduction is a government effort, a social policy, to promote home ownership over renting. It results in owners being tax-favored over renters. Which, as a class, are wealthier? The owners, of course. Thus the deduction is part of a regressive tax policy in which the more well-off get a break on their housing expense while the less well-off do not. It also inflates the market value of home ownership above the level it would be at without the deduction. This further distances the affordability of housing to those at lower levels of income, for whom the deduction is either reduced or not available. It also reduces the liquidity of housing through of the higher price it causes combined with the smaller pool of buyers who can take advantage of the deduction. Should we do anything to change this? I am only framing the question as I see it. This issue will be reviewed more and more and become the subject of serious debate.

Posted by Yowser | Report as abusive

Based on your figures it is clearly a net tax on the poor/middle – regressive. And clearly open to abuse via equity loans.
There’s no doubt that home ownership is one of the most stabilising influences in any society. The point would be to confer that social benefit on as many people as possible.
Extending the tax break past the first/family home surely benefits no-one.

Posted by gryphon | Report as abusive

How come when Washington has a budget problem any time, their first response is that the answer to the problem is to raise taxes? I have an idea, how about cutting spending and balancing the budget first? Then and only then would I concider raising taxes, and any new revenue should go towards retiring the debt (and the tax should sunset when it is retired). I am averse to giving Washington any more money to squander. And from now on, if they want to spend, they need to figure out where the money will come from first. Either cut something else, or raise taxes to cover it, but no more deficits.

Posted by neeros | Report as abusive

I think psychologically eliminating the mortgage deduction would totally depress a nation.

Owning is a dream that people have. They save for it.
They work at owning. They sacrifice.
This deduction is like a reward.
It is a way to feel progressive.
Taking it away, and you’ve attacked
the one last perk in life.
You think people are anti-gov now….touch
this deduction and the next little “needle”
(anything that’s the least bit aggravating in the news),
there’ll erupt widespread riots.

Trust me on this. The psychological connection
is too powerful here to mess with this deduction
at this time in history.

Posted by limapie | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Ramona Owen John L Scott Real Estate | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Lori Bixler Real Estate | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Amie Sprague & Adele Spiro Real Estate Information | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Bill Cox | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Homes Of Quality | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Stephanie Callen | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Karin Zeigler | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Cori Whitaker | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Johna Beall | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Rich Jones | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | The Mortgage Planner Team Blog | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Keith Foote | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Jana Gustafson | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Sue Stevenson | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Gerry Eagle | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Dennis Vance | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Steve Beck | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Beth Clement | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Mike Dorman | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | The Slawson Group | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Denise Blackman | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Rocky Wollenhaupt | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | John Anderson | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Marc Whitman | Report as abusive

[…] Reuters asked homeowners to weigh in on the debate — should the U.S. government keep, alter, or altogether scrap the home mortgage interest deduction? Those who oppose the deduction say that it’s too costly to maintain. Doing away with it could lower federal tax rates by 8 percent, suggests Dean Stansel, adjunct fellow at the Reason Foundation, who argues that most taxpayers making under $100,000 would benefit from tax cuts in place of the mortgage deduction. The Reason Foundation purports that the deduction “subsidizes and rewards wealthy people for buying expensive houses they would’ve purchased anyway.” In 2009, the mortgage interest deduction was claimed on about 25% of all tax returns, and 73% of those returns were filed by households making over $200,000. […]

Posted by What will become of the mortgage interest deduction | Stephanie Maulding | Report as abusive