It’s almost like they don’t know what they’re doing

Ax May Fall on Mortgage Interest Deduction

The popular tax break for mortgage interest, once considered untouchable, is falling under the scrutiny of policymakers and economic experts seeking ways to close huge deficits.

Because homes are selling so well already and current homeowners are awash in excess cash.

Personally, I’m not really in favor of any tax credits that target anything. But the entire system has to be re-worked first. Get a simple flat tax where everyone everywhere has the same deduction and pays the same rate , THEN ditch the mortgage interest deduction and all the other deductions and credits.

Yeah, right.

Via Instapundit.

Comments

  1. Actually, tax credits that offset market imperfections do make sense. One example is the sort recommended to help unemployment by Professor Kim Swales of the University of Strathclyde and his colleagues, and another similar example is the sort recommended by Nobel winner Professor Edmund S. Phelps, McVickar Professor of Political Economy at Columbia University (I also wrote about it here, for an Australian context). Of course, it would be even better to get rid of the market imperfections, but even for that this would help with the transition.

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