Wait.
If you're currently locked into a 30-year mortgage, then the deduction going away would increase costs rather considerably for those people who budgeted for the former legislation. We should grandfather in existing mortgages. If the goal is to change investment habits, grandfathering wouldn't effect the end goal.
Yes, which is why I am curious about why so many are behind this. A lot of people rely on the deduction to maintain property/rental and pay their mortgage. I'm concerned if we do away with that, it will hurt people more than it will help.
Yeah, we need to allow people to plan for this change, and I don't think there's an appropriate way to address existing commitments.
Another thing I worry about is the rental market. Since we're disincentivizing property ownership, the rental market would see more demand, and higher prices in uncontrolled environments.
With this bill, real costs in housing are bound to increase, IMO. It's true that the tax exemption currently functions as a regressive subsidy, though.
