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Transition Relief For Tax Reform’S Third Rail: Reforming The Home Mortgage Interest Deduction After The Housing Market Crash, Nicholaus W. Norvell

San Diego Law Review

This Comment argues that Congress should—in this order of preference—eliminate the mortgage interest deduction, replace it with a credit, or substantially modify it, and that Congress can adopt any of these policies without substantial short-term fallout in the housing market. Part II of this Comment examines how the mortgage interest deduction works, its history, and its intended benefits. Part III scrutinizes the deduction’s inability to achieve its primary objective—increasing homeownership—and examines its negative effects on housing prices, household indebtedness, the environment, and wealth disparity. Accordingly, this Part argues that Congress should reform the deduction, discusses three basic options available for …