Should the Mortgage Interest Deduction be Protected?
The mortgage interest deduction could be on it's way to be heavily reduced if the current legislative effort succeeds. The current debate is whether or not the MID should be protected or not.
"The housing lobby’s effectiveness is measured by its success at garnering subsidies. But the proposed House bill, the Tax Cuts and Jobs Act, would be a shot across the industry’s bow," according to a National Mortgage News post from Edward J. Pinto.
"The stage is now set for a crucial debate between two competing visions: the House plan — which would disincentivize the MID by raising the standard deduction and capping loans qualifying for the MID at $500,000 — and Senate tax reform legislation that effectively would leave the deduction intact."
The argument states that the MID would help the housing lobby but it would not effectively help homeowners. Pinto believes that taxpayers could end up on the wrong side of the deductions causing a pretty serious ripple effect.
To read more about Pinto's thoughts, click on the image above. Do you think the MID should be reduced?