“Last year a study by a Federal Reserve economist estimated that totally eliminating the mortgage interest deduction would cause the average household in the country to lose 10.9 percent of its home value” (From Kenneth R. Harney’s Oct. 9 column, “Tax plan may cost owners more,” The Columbian).
Two arguments about the above statement:
1. Eliminating the mortgage interest deduction and state tax deductions would have a far different effect upon different strata of the market with negligible effect upon the bottom tier and maximum effect upon the top. This is a good example of where, aside from political marketing, average is meaningless except to hide the differences.
2. If home is where the heart is, the “home” value is not the property value. What is the value of your family? Would that be gone if your uninsured house were flattened by a hurricane?
