Just look north to Canada—they’ve virtually the same level of home ownership that we have.
Also, a lower tax rate could enable you to keep your own money just as much—unless you are being subsidized by others who are funding your deduction. They sure could use keeping more of their funds to invest locally.
What you subsidize you get more of, and the more we subsidize mortgages over investment in business, the more we get granite kitchens and marble baths—but less national productivity.
If you’re an investor, you should understand that.
I still don't get it! What does that mean?
We (the govt) should subsidize “business”?
People with extra income after basic needs will invest it in “business” instead of housing?
Banks will have more money to lend and will lend it to “business” instead of real estate?
What does that mean, really?
First, you assume a lower tax rate would be part of the package and offset financially the loss of the deduction?
I do not agree this will happen. I do not trust our government to do that
The purpose of the unelected, appointed “super committee” in eliminating deductions is to raise revenue....to milk the middle class and upper middle class taxpayer
It is not in business to re-direct investment, or to create jobs, or to make taxes simpler or more “fair”. That talk is a feel-good smokescreen. Their goal is to get more REVENUE for the government. To milk more taxes from people in an effort to “reduce the deficit”.
Which given the overall poor inferior qualities of people running our govt, we also have reason to be cynical about.
And as for “productive investment”- the businesses here (mostly small) that design kitchens, sell and install granite counters, design and plumb-in marble baths and upgraded kitchens, sell real estate, businesses that make real estate loans, home improvement/equity loans - all the businesses that create and sell home design products and services - local contractors that install and service them - I think would beg to disagree with you.