Mortgage Interest Deduction Archive

TweetShareSharePin0 Shares Nearly five years ago, the Tax Cuts and Jobs Act (TCJA) brought dramatic changes to U.S. tax policy. The federal corporate tax rate fell from 35 percent to 21 percent and other reforms improved the tax treatment of business investment, lowered taxes for individuals and families, and introduced a new system for taxing

TweetShareSharePin0 Shares Key Findings The waning pandemic and robust economic recovery have come with many benefits—plentiful jobs and fast-growing (nominal) incomes—but also serious challenges such as high and rising inflation. Rather than pushing for more fiscal stimulus or leaving it to the Federal Reserve to handle inflation through higher interest rates, policymakers should focus on

TweetShareSharePin0 Shares Two major provisions in the federal tax code have been limited since the Tax Cuts and Jobs Act (TCJA) of 2017: the state and local tax (SALT) deduction and the home mortgage interest deduction (MID). Limiting the two provisions helped broaden the tax base, offsetting tax revenue loss from reduced tax rates. The

TweetShareSharePin0 Shares As policymakers consider using the budget reconciliation process to make tax changes and enact new spending programs, they may be inclined to add to an already growing list of temporary tax provisions. New temporary tax policy should be avoided in reconciliation. Temporary policy creates uncertainty for taxpayers and scheduling more expirations will add