Committee Hears Conflicting Views On Impact of Mortgage Interest Deduction on Homeownership

摘要

The Senate Finance Committee heard conflicting views on the value of the home mortgage interest deduction and the likely effects of its reduction or elimination at an October 6 hearing on tax incentives for homeownership. Because of its size, the mortgage interest deduction is a possible target in any tax reform plan that involves a tradeoff between the elimination of tax expenditures or subsidies and lower rates. For the same reason, any effort to curtail the deduction is certain to be highly controversial.