I need to clarify that I wasn’t suggesting eliminating the MI deduction for *primary buyers* who buy an existing home, though I’m not opposed to that, either. I’m talking about eliminating the MID for speculators and “investors” who buy existing homes.
In other words, I think that the tax code should not encourage speculation in basic necessities and commodities; it should encourage productive investments like building *new* buildings or expanding or improving productive capacity in some way (capital expenditure). I don’t think that people who are simply trying to buy food or housing should have to compete with well-funded, highly-leveraged “investors” who will greatly exaggerate price movements at the very worst times (when unusually high/low demand/supply are expected).
