Saturday, February 28, 2009

Mortgage Deduction Inefficiency

Awhile back I linked to an article by Peter Dreier about the mortgage interest deduction.

President Obama has proposed to cap the mortgage interest deduction for high-income taxpayers.

The National Association of Home Builders (NAHB) and the National Association of Realtors (NAR) oppose this purely out of self-interest. They also felt there wasn't a housing bubble. No doubt their self-interest in continuing to build an sell price-inflated homes led them to believe such. So, at this point, their opinions can be discarded.

As many unbiased sources have stated, some other nations don't have this silly high-income homeowner subsidy and we would probably be better off discarding the deduction altogether.

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