Reply #26: That's part of it

[gratuitous]

There are all kinds of wrinkles in the tax code to encourage some behavior and discourage other behavior. Home mortgage deductions and dependent deductions are two of those, that have the (seemingly) salutary effect of making home ownership or having children a more attractive lifestyle choice. I don't think anyone buys a home solely for the deduction, and I don't know anyone who had children just so they could knock a few bucks off their 1040.

Is this being ginned up as a potential wedge issue? Who's to say? There have been any number of bogus wedges in the past 20 or 30 years, things I wouldn't expect too many people to fall for, but that have nevertheless worked to distract the electorate.

Home ownership makes for more stable, more livable communities, provides a dependable tax base, and localizes the need for provision of services. If the home mortgage deduction needs to be adjusted so as to bring in more revenue, why not cap the deduction at something like $10,000? Or, if this is unpalatable, allow for full deduction of mortgage interest on one home, half that on a second home, and none on third and subsequent homes. This will have very little effect, really, on the multi-domiciled affluent, bring in more revenue, and leave practically every other homeowner untouched.