I would applaud that.
- People who choose to buy high-end homes should be able to afford higher net payments -- or should be expected to put up a larger amount of cash toward the purchase.
- The government should not be subsidizing second homes in the mountains and on the beach.
- Because the mortgage deduction deprives the U.S. Treasury of $131 billion annually, a change in this law would generate truly significant income -- unlike a symbolic but financially microscopic change such as eliminating deductions for corporate aircraft.
- Low-income taxpayers would not be hurt because almost all of them take the standard deduction on their 1040 forms.
- Many in the upper-middle class who benefit from this deduction want someone else -- in other words, the rich -- to fund the deficit entirely. They certainly don't want their lifestyles to be squeezed.
- Politicians who represent mountain and beach properties will be pressured to resist.
- Real estate agents, residential lenders, etc. will spread fear, uncertainty, and doubt -- even though Britain's experience was that repealing the mortgage interest deduction there had little effect on rates of home ownership or market prices for housing.
- High-priced housing markets like San Francisco-San Jose, where $500 thousand doesn't buy a large home, will complain.