As I understand it, the latest Gang of Six sell-out/compromise (which is sounding more and more like it is pining for the fjords) includes a proposal to do away with the home mortgage deduction. This is not the first time I think I've seen the GOP cast a wandering eye in this direction, and I have to ask why?
The housing market is, shall we say, slumping. What are the consequences once we eliminate the deduction? I ask because I don't know. Granted, the federal government's artificial expansion of home ownership contributed mightily to the current economic crisis, but is the mortgage deduction in the same class? Is there a conservative argument for eliminating it and further depressing the market? I ask because I just don't know.