Escoguy wrote:I think in the

[carlsbadworker]

[quote=Escoguy]I think in the 80s or early 90s, the UK got rid of their version of the mortgage interest deduction. Had no impact on property prices, in fact, prices probably appreciated even faster than when it was in effect.

Many owners overestimate the value of the deduction.

One indirect impact, there may be less charitable giving when you can’t itemize. One would need to setup something like a donor advised fund when income is high and perhaps not donate every year. Most people won’t think of that.[/quote]

Sure, home price won’t decline because corporations can deduct the interest and all expenses and pay only 20% on any capital gain. Home ownership is likely going to decline, as it did decline in UK since that took effect.(source: https://www.the-american-interest.com/2017/11/14/anatomy-homeownership-crisis/)

If you are top 1%, obviously this is a fantastic law. The income inequality skyrocketed since 1974 when they removed mortgage deduction:
https://www.equalitytrust.org.uk/how-has-inequality-changed

Yet, it is all based on if you assumed social mobility is over-rated over the long run for the country, even though some research has proved otherwise. (https://www.oxera.com/getmedia/ea133d87-911f-4d0f-87fb-16964c74f569/Social-mobility-and-the-economy.pdf.aspx?ext=.pdf)