Once upon a time, federal government officials (elected and otherwise) thought it would be good to help people buy homes. So, they passed a law. Then they passed another one, and another one and a whole bunch more. Because, if it helps one person, it’s worth doing. Right?
Now, we see just what all that help has done:
Created in 1913, the MID costs an average of $80 billion annually, and it’s supposed to help families buy a primary home. But 30 percent of the households claiming the deduction claim it on a second home—like, say, a vacation home. Lower-income families have a harder time claiming the deduction, because it requires itemized taxes.
I see nothing wrong with a vacation home. I have one. It’s also my primary home, but having it double as a vacation home makes my vacations much less expensive.
That aside, here’s the issue: highly complicated systems are subject to much abuse. The various laws which have been passed with respect to home ownership, taxes, tax breaks, special programs, etc ask to be taken advantage of.
It is past time to simplify. What if we elected the next Congress with the brief of not passing any new legislation unless it removed old legislation –and that was all it did?