The mortgage interest deduction is regressive, ineffective, wasteful, distorts the housing market (although worshippers of density and housing supply never admit it), and comes at the cost of denying 76% of eligible Americans the housing help they’re entitled to–under current law; not what they actually need. People are literally going homeless because we’d rather spend money on tax breaks for the rich than affordable housing–even if we need the affordable housing and construction jobs it would create more. The mortgage interest deduction must be ABOLISHED.
But what makes overhaul of this tax subsidy especially urgent is the current nationwide housing crisis in the United States, where 76 percent of the 19 million people who qualify for housing assistance from the U.S. Department of Housing and Urban Development cannot obtain it because not enough federal funds have been made available to help them. The $70 billion to $100 billion that this country annually sacrifices for the MID dwarfs HUD’s $46 billion budget, the primary means of housing assistance for moderate and low-income people.