what you say is well and good, but how do you feel about changing the rules of the game midstream for some 50 million people or thereabouts who made investment decisions based on the rules that are allowed? remember, real estate is long term, not short term.
Valid point son of caesar and because the government is supposed to be prohibited from passing ex post facto laws, simply change the law going forward.
In fact, this should apply to ANY change in the tax code. For X number of years existing deductions of this type are allowed then if you purchase a new whatever, NO FURTHER SOCIAL ENGINEERING.
See why I said it is insidious? They hook the taxpayer with the deduction lure and now the taxpayer is forced to stay on the line.
Taxes are to support the legal functions of the government as WE THE PEOPLE allow. Any other purpose is a road to ruin.
Anyone who gets themselves that far in debt because they have a tax deduction cushion is flirting with danger and should know better.
Your point is valid, but this kind of thing happens all the time, and there is nothing anyone can do about it except complain. Sometimes "changing the rules of the game midstream" works to the taxpayer's advantage, and sometimes it doesn't. Making long-term investment decisions based on tax laws that can change in 24 hours carries an inherent risk.
If you think the elimination of the mortgage interest deduction is bad, just wait a couple of decades and see what happens when they eliminate the tax exemption on Roth IRAs.