HousingWire – Kerri Ann Panchuk
The mortgage interest deduction remains the hot potato of tax reform and U.S. deficit debates. To cut it, or not to cut it, that is the question. If you accept new research that the Tax Foundation – a nonprofit that focuses on tax reform – released, the end of the MI deduction will stifle economic growth, causing the economy to shrink by $254 billion and the nation to lose 659,000 jobs. Wages also would fall at least 1.1%, the agency suggests. All of this, of course, would result from the loss of the deduction because it would kill spending power and growth.