The Distributional And Revenue Consequences Of Reforming The Mortgage Interest Deduction
AbstractThe mortgage interest deduction (MID) is costly, and half the benefits accrue to the top 10 percent of taxpayers. This paper analyzes how five modifications to the MID would affect federal individual income tax revenue and the distribution of the tax burden. Under full repeal, federal individual income tax revenue is estimated to increase by up to $1.3 trillion, equal to 0.7 percent of GDP, between 2012 and 2021. Converting the deduction to a 15 percent non-refundable credit could increase federal individual income tax revenue by up to $599 billion, equal to 0.3 percent of GDP, over this period.
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Bibliographic InfoArticle provided by National Tax Association in its journal National Tax Journal.
Volume (Year): 64 (2011)
Issue (Month): 4 (December)
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- Christian A. L. Hilber & Tracy M. Turner, 2010.
"The Mortgage Interest Deduction and its Impact on Homeownership Decisions,"
SERC Discussion Papers
0055, Spatial Economics Research Centre, LSE.
- Christian A. L. Hilber & Tracy M. Turner, 2010. "The mortgage interest deduction and its impact on homeownership decisions," LSE Research Online Documents on Economics 31759, London School of Economics and Political Science, LSE Library.
- Christian A. L. Hilber & Tracy M. Turner, 2013. "The mortgage interest deduction and its impact on homeownership decisions," LSE Research Online Documents on Economics 49843, London School of Economics and Political Science, LSE Library.
- Hendershott, Patric H. & Pryce, Gwilym, 2006.
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Journal of Urban Economics,
Elsevier, vol. 60(1), pages 50-68, July.
- Patric H. Hendershott & Gwilym Pryce, 2005. "The Sensitivity of Homeowner Leverage to the Deductibility of Home Mortgage Interest," NBER Working Papers 11489, National Bureau of Economic Research, Inc.
- Martin Gervais & Manish Pandey, 2005.
"Who Cares about Mortgage Interest Deductibility?,"
University of Western Ontario, Economic Policy Research Institute Working Papers
20059, University of Western Ontario, Economic Policy Research Institute.
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