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The mortgage interest deduction (MID) is the largest source of US federal homeowner support. I estimate that this tax expenditure fluctuated between 0.2 and 0.9 percent of gross domestic product… Click to show full abstract
The mortgage interest deduction (MID) is the largest source of US federal homeowner support. I estimate that this tax expenditure fluctuated between 0.2 and 0.9 percent of gross domestic product (GDP) over the past five decades. About half of these fluctuations were caused by changes in tax policy, rather than changes in the housing market. Fluctuations in the MID tax expenditure do not tend to move with homeownership rates; instead, they are procyclical, meaning the MID may exacerbate business cycles.
Keywords:
tax;
tax expenditure;
interest deduction;
mortgage interest
Journal Title: Public Finance Review
Year Published: 2019
Link to full text (if available)
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Journal Title: Public Finance Review
Year Published: 2019
Link to full text (if available)
Share on Social Media: Sign Up to like & get
recommendations!