The home mortgage interest deduction is one of those sacred cows of the tax code. It is almost as sacred as not taxing church property. Yet it is one of the most regressive of taxes. Richer people in the highest brackets with the largest houses and the largest mortgages get the biggest dollar break.

Expect to see a cap on the mortgage interest deduction in the new administration. The real estate industry will howl that this will keep downward prices on the housing industry that desperately needs to recover.

I would not mind seeing a cap on the exemption for church property as well.

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