Quote:
Originally posted by sebastian_dangerfield
I agree it should not fiddle with the markets, but if it must fiddle, the interest deduction is damn sensible fiddling. .
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While you might fiddle with it, reasonable expectations limit how much you can fiddle at once without creating severe dislocations. I would repeal it, but over a long period. E.g., reduce the deductible amount in 5% increments over 20 years. So, this year 100% deduct, next year 95% of interest is deductible, and so forth. Sure, people will pay for a lot of points with new mortgages, but at least you'll get most of the expected tax savings on your curren tmortgage.
