Tax Reform's Third Rail: Mortgage Interest

Policy Backgrounders | Taxes

No. 139
Friday, February 16, 1996
by Bruce Bartlett


  1. Dave Skidmore, "'It's War!' Cry Realtors Over Mortgage Idea," Washington Times, May 31, 1995.
  2. Roger E. Brinner, Mark Lasky and David Wyss, Residential Real Estate Impacts of Flat Tax Legislation (Lexington, MA: DRI/McGraw-Hill, 1995); H. Jane Lehman, "Flat Tax Could Cost Owners," Washington Post, July 1, 1995.
  3. James M. Poterba, "House Price Dynamics: The Role of Tax Policy and Demography," Brookings Papers on Economic Activity, No. 2, 1991, pp. 152-155.
  4. Lee A. Sheppard, "Should Sales of Personal Residences Be Exempt from Tax?" Tax Notes, March 25, 1991, pp. 1433-1434.
  5. Dale W. Jorgenson and Kun-Young Yun, "Tax Reform and U.S. Economic Growth," Journal of Political Economy, vol. 98, no. 5, pt. 2, October 1990, pp. S151-S193. Allowing immediate expensing of capital equipment and taxing all income only once removes savings and investment from the tax base, making the flat tax a consumption tax.
  6. Edwin S. Mills, "Dividing Up the Investment Pie: Have We Overinvested in Housing?" Business Review, Federal Reserve Bank of Philadelphia, March-April 1987, pp. 13-23.
  7. U.S. Congress, Joint Committee on Taxation, Estimates of Federal Tax Expenditures for Fiscal Years 1996-2000 (Washington: U.S. Government Printing Office, 1995), p. 25.

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