Tax reform must not keep tax breaks for real estate

Source: Cato Institute
by Ike Brannon

“As the House Ways and Means committee proceeds with the markup of its landmark tax reform proposal, one change that seems inevitable is the curtailment of the modest reforms of the myriad home ownership tax breaks contained in the original legislation. These included capping the deduction for mortgages below $500,000, limiting the deductibility of property taxes to $10,000, and eliminating the deductibility of state and local taxes altogether. While the realtors, homebuilders, and mortgage bankers howled at the original proposal and look as if they will soon get their way, mostly, the reality is that no tax reform worth its name can keep these expensive and economically unproductive tax breaks and still manage to lower rates and boost economic growth — the ostensible goals of the entire exercise.” (11/08/17)