Let me ask you this.
By your own reasoning, should we do away with all household mortgage interest deductions?
I mean, why should folks who don’t own a home have to subsidize homeowners?
I don’t advocate for this, but it seems to be something you might, if your reasoning is applied across the board.
By your own reasoning, should we subsidize people buying million dollar houses?
The MID is really only used by the very upper middle class and wealthy as the standard deduction is usually greater than mortgage interest + the other itemized deductions (charity, health care, local taxes, etc.)
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By your own reasoning, should we do away with all household mortgage interest deductions?
I mean, why should folks who don’t own a home have to subsidize homeowners?...
The reason is a matter of simple fairness. People who don't own a home and rent already benefit from a mortgage interest deduction. How? Mortgage interest is deductible on their landlord's taxes. In a competitive environment this savings is reflected in the amount of rent charged.
Allowing a mortgage interest deduction for a homeowner levels the playing field.
If we do not allow a home mortgage interest deduction the US will become a nation of renters. Do we really want that?
And, if you think your rent is too high now, what do you think will happen when a large percentage of the population suddenly discovers that the buy/rent decision has tilted toward renting? That's right, more renters chasing the available properties will drive rents up.
Well, DO, the mortgage interest tax deduction is meant to encourage home ownership by making it a tad more affordable.
What is the purpose of reducing taxable income to the IRS by subtracting state income tax? Is it to encourage states that are already high tax to become even more so because Uncle Sam will make up the difference?
“I mean, why should folks who don’t own a home have to subsidize homeowners”
Because homeowners like me in illannoy are paying out the ass for the freaking schools!