Wednesday, October 15, 2008

Atrios makes an important point

He says:

owever given that we're in a financial crisis which has at its foundations declining home prices, now would not really be the right time to do away with that particular [i.e. mortgage interest] deduction. And I'd prefer that before we scrap the employer based health care system we... come up with something else!

I have published papers pointing out that the mortgage interest deduction does little, if anything, to stimulate homeownership, is distortionary, and is inequitable. But I think we can wait awhile now before we do anything about it...


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