3. Eliminate mortgage interest deductions for investment properties
When people make suggestions like this, it shows an obvious misunderstanding of business principles and taxes.
Rental real estate is a business. Business is taxed on the difference between income and expenses. A mortgage is an expense for a real estate business, along with taxes, insurance (which isn’t deductible for homeowners BTW), maintenance ((which isn’t deductible for homeowners BTW), advertising expenses, and the list goes on.
So, mortgage interest for investment property is inherently a business expense. The tax laws that apply also apply to your local restaurant owner who deducts his lease payments as business expenses. It also applies to many of our employers who deduct expenses such as the utility bills, office lease payments, and our salaries and benefits prior to computing the amounts on which they are taxed.
