Here is another article:
https://www.nytimes.com/2017/05/09/magazine/how-homeownership-became-the-engine-of-american-inequality.html
What's the big deal? The deduction partially offsets high marginal tax rates for wealthy folks. It has supported housing prices at the high-end, and is of negligible value for most middle-class home owners, since mortgage rates have plummeted (dropping interest payments below the standard deduction level). It would be great to reduce/end the MID AND LOWER top tax brackets as a part of comprehensive tax reform. We could probably agree that extraordinarily high marginal rates divert investments toward tax avoidance, which may not be optimal. Of course, ending the MID would significantly damage the housing market in some areas, and be recessionary in the short-term. Hence, the status quo.
https://www.nytimes.com/2017/05/09/magazine/how-homeownership-became-the-engine-of-american-inequality.html
What's the big deal? The deduction partially offsets high marginal tax rates for wealthy folks. It has supported housing prices at the high-end, and is of negligible value for most middle-class home owners, since mortgage rates have plummeted (dropping interest payments below the standard deduction level). It would be great to reduce/end the MID AND LOWER top tax brackets as a part of comprehensive tax reform. We could probably agree that extraordinarily high marginal rates divert investments toward tax avoidance, which may not be optimal. Of course, ending the MID would significantly damage the housing market in some areas, and be recessionary in the short-term. Hence, the status quo.
Last edited by:
oldandslow: May 15, 17 14:44