Yeah, it might, but the purpose of the tax code is to raise money for the government, not to favor one industry at the expense of others.
When Jack buys a $200K instead of a $400K house, he (probably) doesn't bury the money he's saving in a Mason jar in the backyard. He's investing and spending it in ways that create -other- jobs.
Read up on "Bastiat's parable of the glazier" if you want to know how this works, and the flaw in your thinking.
Those other jobs should not be penalized in order to subsidize the jobs in homebuilding. Most of which appear to be going to illegals, anyway.
The only reason this country became what it is since 1776 is because of capitalism, whereby you get to keep what you work for. It is why we live in air conditioned homes with food in the refrigerator and indoor plumbing. Take away the incentive to work, and what do you have...a bunch of sheet heads living in tents with a sand floor, wiping with their left hand.
“the purpose of the tax code is to raise money for the government”
maybe it started as so but that is a way too simplistic statement that does not describe the US tax code, and hasn’t for a long long time
for your entire lifetime and mine, the tax code has been used to incentivize, reward/punish, and encourage certain activities, ostensibly for the good of our economy and our society
cigarettes bad? tax them heavily. home ownersip good? tax it lightly
the mortgage tax deduction is/was intended to subsidize and encourage home ownership, to stabilize communities, to help individuals create stability and wealth, to create jobs in many many different related industries in communities
Have these interests become obsolete or passe?
It will be very interesting to see the net gain in income to the govt (and to the local communities heavily supported by property taxes), and the effect on individual wealth and jobs, once the mortgage deduction is gone