Another potential solution I haven’t seen discussed much is limiting/eliminating the deductibility of interest. Assets tend to become inflated when interest ra

Another potential solution I haven’t seen discussed much is limiting/eliminating the deductibility of interest. Assets tend to become inflated when interest rates are low or lots of financial leverage is used to acquire them. To counteract this, one solution might be to eliminate the deductibility of interest for tax purposes, which for mortgages in particular, is a regressive tax subsidy that benefits higher earners. It could be implemented gradually (e.g., reduce the deductibility by 1-2% per year until it reaches zero) to avoid immediate shocks to the system and provide investors with the ability to plan. It could also be implemented to apply only to non-primary residences if we want to keep a popular middle class tax subsidy. This would target 2nd, 3rd, etc. homes and property and assets owned by corporations.