agip wrote:
take away the mortgage deduction? would kill housing prices! Didn't happen.
The mortgage deduction has not been taken away.
It's just that fewer people now itemize deductions.
But those that do, absolutely deduct their mortgage interest, taxes etc.
If you actually took away the mortgage deduction and kept the standard deduction the same, lots of people would have higher taxes.
Housing prices are affected by those buying now, not by people holding on to their houses and getting a tax hike.
The tax code does not negatively affect new home buyers. Changing interest rates have more of an affect.
Mortgage interest is highest in the first year, so people taking out new mortgages are more likely to be able to itemize still.