As the ramifications of President Trump's tax plan are analyzed, the mortgage interest tax deduction has become a source of debate.
The National Association of Realtors posits that any elimination or alteration of mortgage interest tax deduction would disincentivize consumers from home ownership, and increase taxes on the middle class. Other experts argue the mortgage interest tax deduction is not a driving factor encouraging consumers to purchase a new home, HousingWire reports.
“The mortgage interest rate deduction is not increasing the pipeline of working and middle-class homeowners,” Redfin Chief Economist Nela Richardson said in an interview with HousingWire. “It is a subsidy incentive that is given to people who itemize, and itemizes tend to be for high-income earners.”
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