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As long as I don’t end up paying more tax than before, I don’t care if all of the deductions go away.
I think that if everyone feels the same way, there cannot be any change. There will be winner and losers, and nobody wants to be a loser.
But nobody buys a bigger house so they can get a bigger deduction.
True, I no longer have a mortgage and therefore not a dog in this fight. I do believe that the mortgage interest deduction (by putting more cash in the pocket of homeowners with mortgages), consciously or subconsciously, helps to prop up the real estate market and would expect that if this were eliminated, home prices would soften.
Looking across the whole market, since it's a real economic impact, it should have some real effect on the market. But each home purchase is inherently anecdotal. It's a sea of people making individual decisions. I'm sure the mortgage interest deduction allows many higher end borrowers to justify taking a bigger mortgage than they ordinarily would, but are there enough of those guys to make a difference? Perhaps.
But as someone who is shopping for a new house, anything that softens the market is OK in my book. :lol:
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