Republicans remove preserving mortgage interest deduction from their platform. If you can get past the reporter’s knee-jerk idiocy (“giving Mitt Romney more flexibility to promote his plan to lower tax rates paid by corporations and the wealthiest Americans without increasing the federal debt”), this is an excellent idea, long overdue. Why should renters pay for their housing with
pre- after - tax earnings while homeowners get a deduction? That’s as ridiculous as forcing the self-employed buy medical insurance with those same after-tax earnings, of pay 15% of their income to Social Security or .. wait a minute ….
In any event, we’ll not hear of this again, except from the Democrats. The mortgage interest deduction may distort demand and disadvantage those who can’t buy a home but it’s beloved by builders and Realtors and that’s that.
“The mortgage-interest deduction is high on the list for all Realtors,” said April Newland, a convention delegate from the Virgin Islands. She termed it “the last vestige of why people would be interested in buying a home.”
If the deduction is now the only reason why people would want to buy a home then we’re in far, far more trouble than anyone has so far let on.