All the mortgage tax deduction does is help inflate the price of homes.
You are correct. And the analysis in the article is also correct in saying that it is a welfare program primarily for rich people. Makes no sense. Get rid of it.
Gotta disagree with the article
1. scrap the income tax is the best answer
2. beyond that, tax ONLY profit. ALL utilities and property expenses aren’t even counted as income. They are expenses.
Well, it’s time to STOP anything that assists the middle class... better to cut this out so MORE money can be sent to Al Gore’s liberal elite pin heads - and what’s left can be given to Holder’ people... and other liberal victim groups...
No, the Mortgage Tax Deduction is one of the reasons people actually purchse homes.
Rent is pissing away money, while owning a home builds equity. (Granted, you'll spend far more money on the mortgage itself, maintenance, upkeep, etc.. than you'll ever get back from the sale price when you sell, but the fact is some of that "equity" comes back.)
If you kill the mortgage tax deduction you'll kill what little here is left of a housing industry in this country. Homes won't sell, or they'll have to sell at greatly deflated prices in order to move.
There's also the fact that new home sales generate somewhere between 3-5 long term jobs, so by killing the mortgage interest deduction, you're driving unemployment up as well.
As for me, I don't really give a hoot what they do. My house has long been paid for, when I move I'll pay cash for my next one (downsizing.) Just saying, you eliminate the mortgage interest tax deduction and you kill the housing sector and the larger economy overall. Guarantee that.