Reply to Romney Paid 13.9% Tax Rate on $21.6 Million in Income.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Most people around here probably have a mortgage interest deduction that equals half that family's take home pay.

Can anyone explain to me why that tax break exists?[/quote]

I honestly think it was created to get more lower middle income people to invest in housing.  It is also a boost to the housing and construction industry.  Before the housing bubble of 2006 or 7, buying a housing was considered most family's largest asset.  The potential for risk in losing that asset was low.  [/quote]

I may be wrong about this, but I believe ALL interest deductible was at one time deductible.  And at some point, the government eliminated the deduction, but kept it in place for mortgage interest.  So the deduction wasn't so much created as maintained, likely for the same reasons many are opposed to eliminating it now - by eliminating it, you lower housing values across the board overnight, increasing the number of underwater properties, and increase the cost of owning the same house you owned yesterday, potentially increasing the number of foreclosures.

As for the reasons behind the initial deduction for all interest, I've no idea.  [/quote]

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