You are looking at this from the liberal point of view. Taxpayer A keeps more of what they earn.
Pell Grant recipient gets free cash from the government, generally only qualifying if they are low tax brackets.
See the difference?
It's my money in your example that I'm keeping. In the case of Pell Grants, it is someone elses money that I'm receiving.
Wrong. I am looking at this from a libertarian point of view. The government has no business subsidizing the housing industry.
Shouldn't I get a tax deduction for all the interest I pay on credit cards? Why should you get a tax break on interest paid for a house, but I don't not get a tax break on interest I paid for my television??
You seem to think that you tax break doesn't cost anything. Wrong. Everyone pays more so that a few, like you, can pay less. If they eliminated the housing tax deduction, then Taxpayer C might only pay $28,000 instead of $30,000. The fact that you (and many others) are getting this tax break means that the Taxpayer C's (like me) must pay more to compensate.
This is not fair.