The argument is usually that it inflates house prices to consume most of the deduction. See also: federal guarantees on student loans have just made tuitions ri

The argument is usually that it inflates house prices to consume most of the deduction. See also: federal guarantees on student loans have just made tuitions rise to consume the loans. Even if you don't go for that argument... - It disproportionally helps richer people (you get a bigger benefit if you have a $1m house than a $100k house). - It encourages riskier borrowing.