In a recent first tuesday poll, 66% of readers (533) believed the mortgage interest tax deduction (MITD) should be eliminated from the U.S. Tax Code since the MITD:
- only rewards those who purchase a home with a mortgage, and leaves those who pay with cash and renters out of the incentive; and
- serves the interests of lenders who want people to purchase homes with a mortgage, but does little to benefit the long-term solvency of the homeowner.
On the other hand, 34% of voters (274) said the MITD should remain because it:
- helps increase the quality of housing an American family can afford; and
- is responsible for helping families achieve the American Dream.
A few moderate commenters thought the wisest course of action would be to gradually eliminate the MITD over a longer period of time.
For more information regarding the MITD and to vote in the poll, see the August 2011 first tuesday article, Give me homeownership or give me death!
Well said Rob (and thanks for the name correction)! Good point Alex!
I’m moving on now. Thanks to y’all for this discussion.
Renters get many benefits out of living in a rented premises. Renters get police protection; fire protection; and many municipal services. If renters have kids, they get free schooling for their kids. These benefits alone most likely more than cover the rents the tenants pay. Property owners pay property taxes and mortgage interests and maintain the property in order to provide housing for the tenants. It is just fair that property owners get a break somewhere such as mortgage interest deductions. These are some of the reasons in addition to the obvious and noted incentives to own and provide rental housings and other good reasons to keep MITD in place.
Pardon me. It’s Dann above, not Dan.