Mortgage Deduction Phaseout
As Richard Epstein said on The Libertarian, one of the deductions he is highly in favor of eliminating is the Mortgage Interest Deduction.
I propose a phaseout of the deduction starting with a deduction cap of $60,000 for the first year and reducing it by $2,000 per year over 30 years.
The current max for a mortgage size is $1 million. A $60k deduction is equivalent to a 6% mortgage at this debt level — a rate very few people are paying.
A Tax ‘Reform’ For The Worse — Andrew Stuttaford
Over at the Washington Examiner, Philip Klein argues in favor of phasing out the mortgage interest tax deduction, an idea that seems to be gaining some traction with the likes of Republicans, such as House Ways and Means Chairman Rep. David Camp. It shouldn’t have.
Phasing out this deduction may, at least to market fundamentalists, rest on sound economic logic, but politically there is very little to be said for it. Before we get to why, let’s remember a few things:
