Eliminate mortgage interest deduction

Thinking about the country running out of money and what to do lessening the day, you have to consider getting rid of some tax deductions as well as cutting pay to government workers, Social Security, government retirement and a host of government programs.

Eliminating home mortgage deduction is a place to start.

“According to the Treasury Department, the budget for 2012 projects that the mortgage interest deduction will cost the budget around $100 billion. But Eric Toder, co-director of the Urban-Brookings Tax Policy Center in Washington, estimates that elimination of the deduction would only generate $70 billion to $80 billion, because some people would pay off their mortgages early if the law is changed.

"’Most of the deduction is going to the people who are itemizing -- relatively high-income people who would be home owners anyway,’ Toder says. ‘People on the margin -- who might be thinking about renting or buying -- can't use the deduction.’"

http://www.dailyfinance.com/2011/04/20/eliminate-mortgage-interest-tax-deduction/

The deduction is a tool of the real estate industry.

Admittedly, gnashing of teeth, wailing and beating of chests would follow eliminating the mortgage deduction. The populous – those who use the deduction, anyway – might even take torches and pitchforks and march on the Capital City.

There is no easy way for politicians to cut or eliminate deductions. But, elected people are the ones who made deductions part of law, from pressure by citizens or by lobbyists. And, Treasury would gain only $70 billion to $100 billion. With the deficit now around $17 trillion, what’s $100 million here or there?

A beginning.