Why They're After Your Favorite Tax Break

摘要

There may be nothing more american than the home-mortgage deduction, which came into being in 1913-two years before the New York Yankees wore pinstripes. This deduction has helped make the American Dream affordable and has contributed to a run-up in the homeownership rate to 69% from 44% during World War II. In recent years, the mortgage deduction hasn't just helped folks get into a house, it has given them the most valuable tool for managing their finances since the piggy bank: tax-deductible home-equity loans and lines of credit. Just try to find a rate on a credit card or construction loan that, after adjusting for taxes, comes to around 4%, as it does with home-equity borrowing. People have been tapping into this low-cost source of funds for college tuition, vacations and other spending that bailed us out of the last recession.