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It’s time to renovate the mortgage interest deduction. Homeowners who itemize their deductions receive this benefit. Under the proposed GOP plan, fewer households will find it worthwhile to itemize. Households making over $100,000 annually receive 77% of the subsidies.
The MID distorts the market, subsidizing folks who buy one or more homes and rewarding size and sprawl. The more expensive the house, the greater the subsidy. The added demand incentivized by the MID pushes up home prices and soaks up much needed supply.
MID should be restructured to help working class families become homeowners, instead of subsidizing the wealthiest.
– Nela Richardson, Ph.D., Chief Economist, Redfin