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There has been much talk lately about how to bring the federal budget to some form of sanity. One item that pops up from time to time is the mortgage interest deduction. In fact, the deficit commission, who is charged with providing a set of recommendations on balancing the budget by 2015, is considering the elimination of this tax break as one of its recommendations to congress.
No matter how motivated some politicians might be to cut the deficit, some programs and tax credits are simply untouchable. For example, Social Security can never be eliminated. Also in this category is the mortgage interest deduction. Despite all of its problems and its incredible expense to the government, homeowners and banks will never allow its elimination. Still, the deficit commission has it on the table, according to Damian Paletta of the Wall Street Journal. But since it will never be killed altogether, it could be reformed instead.
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