I disagree. Buying a single family house to house and raise your family should be encouraged. This is where good citizens originate for the building up of a good and just society.
Speculation and other real estate risk activity should no way be exempt and the burden and taxes should be on the one who takes the risk.
Question: Would a severe limitation on second and third, etc... mortgages on primary residences - especially when children are involved - help assist in innocents from being thrown out on the street when a Ralph Kramden plan goes down the tubes?
Encourage whatever you want, just don’t use the tax code to do it. The only justification for the government confiscating the fruits of my labor is to raise revenue to fund legitimate government functions. Influencing behavior of individuals or corporations is not the Feds’ business.
And why is that? Because home owners are better people than renters? Because people with mortgages are more noble than those who have paid off their home?
Garbage. You are spewing the same type of liberal garbage that is spewed about us needing gun control for the “good of the children” and about us needing affirmative action to right past injustices.
I say stick it to the Americans and Freepers who depend on the mortgage deduction. Then we lower rates that much further.
And exactly how does the home mortgage deduction (HMD) encourage home ownership? For many taxpayers, the HMD is illusory because (a) they don't itemize their taxes; or (b) as a result of the HMD, they are subject to the alternative minimum tax.
IMHO, the people who benefit the most from the HMD are the real estate brokers and mortgage lenders. They use the HMD to convince buyers to borrow more than they might otherwise borrow because the government is paying part of the cost throught the HMD. In the absence of the HMD, people will still buy houses; rather they may have to buy a slightly less expensive house than they might otherwise buy with the HMD.