and i agree deductions (and credits) do encourage certain behaviors (hence poor people poping out kids to get more food stamps and the tax credits) But charitable giving should be encouraged as these organisations do relaly help those that need it and not just those that want it. I dont agree with the price being higher because of the mortgage deduction, Prices are to easily influenced by supply and demand for it to be a factor. Home ownership should be encouraged as it is the single greatest item of wealth that some one can have AND it is something that can build a future for that persons children on into the future and as i have said many times a parents only job is to create a better life for their child then they had.
That might be true of Hawaii residents planning to be here until they die, but there are people & places that don't fit that.
It used to be a home was the best investment because you always had a good shot at the value increasing, at having equity for expenses throughout life, and so on.
Now, with the way careers drag us from one town to another, one state to another or even one country to another, there are many who opt to never buy a home and be saddled with maintenance, renters, repairs, and all the other costs and inconveniences of dealing with a house.
If you don't know if you'll be in a home long enough to break even or make a profit when you leave it, buying makes no sense. Plenty of people buy condos which turn around quickly when they sell to move, and they can use the mortgage deduction.
I think the mortgage deduction can be phased out over several years. By then, people will have the ability to adjust their situation if needed.
Did you know if you had been using your operating expenses (including mortgage interest) on a rental to reduce your taxable income by those losses, once your taxable income exceeds $150K, you can't use those losses against your personal income. You can use it to reduce the profit you pay taxes on when you sell if you paid less for it than you sell it for, so at least you don't lose that loss deduction forever (unless you never sell).
These are the kinds of rules we should never have to deal with. It's nice if you qualify for the tax breaks, but not everyone's position lets them do that. Hence, the only fair tax system is to eliminate ALL tax breaks, individual and corporate.
The hardest thing in the world to understand is the income tax. - Albert Einstein