Nov
16

Mortgage Matters

 With the median house value in the US at $205,000, capping the mortgage interest deduction on loan principal eligible for the deduction to $500,000 from the current $1,000,000 would impact just 5% of home owners. Moreover, just 6.7% of the benefits of the MID go to the middle 20% of households, compared to 72.6% that goes to the top 20% of households, including 31.5% that goes to the top 5%.

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Comments

  1. Hi Elliot – The data is interesting, but “almost” any tax cut will disproportionately benefit top earners because top earners pay the majority of taxes. Unless a tax benefit is limited to income under a threshold, then the benefit will skew to the top earners.

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