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From what I've read, economists argue that the Mortgage Interest Deduction is skewed towards benefiting the rich. Rich people buy more expensive houses, which l
by jzymbaluk 9y ago
From what I've read, economists argue that the Mortgage Interest Deduction is skewed towards benefiting the rich. Rich people buy more expensive houses, which leads to more interest, and a larger deduction. In that respect, the republican tax plan sounds like it was a step in the right direction.
here's a source:
https://niskanencenter.org/blog/time-repeal-home-mortgage-interest-deduction/ https://niskanencenter.org/blog/time-repeal-home-mortgage-in...
- emodendroket 9y agoI could possibly believe that, in a vacuum, the home mortgage deduction doesn't serve its stated purpose and should be replaced with something else. But I find it easy to be cynical when it's paired with tax breaks for all the costs associated with being a landlord for up to 10 properties. https://www.cnbc.com/2017/12/12/republican-tax-plan-poised-to-benefit-rental-landlords.html https://www.cnbc.com/2017/12/12/republican-tax-plan-poised-t...
- davidw 9y agoYeah, overall, that plan was terrible, but the point stands that the US spends billions for the deduction and most of it goes to people who are already pretty well off. https://www.theatlantic.com/business/archive/2017/05/shame-mortgage-interest-deduction/526635/ https://www.theatlantic.com/business/archive/2017/05/shame-m...
- clairity 9y agothe mortgage interest deduction should be phased out over some period of time (like 5 years), rather than capped like it was in the trump tax bill. economically, it's taxpayer-funded gift to the real estate industry (in the form of higher home prices, higher building costs, higher commissions, more interest, etc.).