- Feb 12, 2007
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So would you argue that the mortgage interest deduction is a tax on renters?
It's not punitive. No one is being punished. People are, in effect, being given a tax break for having insurance. It's no different from that tax breaks given to homeowners or investors.
Again, I believe you're right that there's no difference. But in both cases, it's wrong and equally punitive. In either case you're presented with a mandate - do as you're told, or you'll have to pay more taxes. You can play games with the psychology of it by calling it a 'break' for those who comply, rather than a 'punishment' for those who don't. But the dynamic is exactly the same.
No, they are not the same, unless somehow renting is more expensive than owning. In this environment it's not.
I'd still rather see the mortgage deduction phased out and a low flat tax with no deductions in its place. But it's not accurate to call mortgage deductions for owners a tax on renters.