Deduction that is sinking America

As most reader know I am not friend of the mortgage interest deduction in America.  If changes the costs of housing and skews them against apartments.  It also causes people to unreasonably assume you will get a huge deduction for the interest and get themselves into trouble.  Well I was glad to come across a posting discussing the mortgage deduction.  This was set off by an op-ed in the Boston Globe.

This is a very important discussion that needs to be had in America.  The mortgage deduction really needs to be rethought.  While I would like to completely remove all market skewing taxes I do not really think we will be able to do that.  So I think removing it above a certain areas with a phase out.  This seems to be a really good option, as long as we don't index to inflation, this will eventually work itself out which would be great.