(Source: McClatchy-Tribune News Service) – The following editorial appeared in the Seattle Times on Friday, Aug. 5:The news last week included a report that Congress may cut back the tax deduction for mortgage interest. Done carefully, this could be a good thing. It could help lower the federal deficit and the growth in the national debt with little hurt to homeownership.

In gross dollars, the mortgage tax deduction is one of the largest exemptions in the federal tax code. About 25 percent of taxpayers benefit from it, with more benefit at the upper end. The more you borrow, up to $1 million, the greater the deduction you get. That makes this tax break especially valuable for people who buy the biggest houses or who live in regions with the highest house prices, such as Los Angeles and San Francisco.

Source: McClatchy-Tribune News Service

Posted on Mon, Aug. 08, 2011 08:17 AM

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