Jon Huntsman is getting high marks from the WSJ and elsewhere for his jobs/tax proposal, which appeared in advance of Romney’s and Obama’s. All good – but I have a problem. He supports the elimination of the mortgage-interest deduction, saying we would make up for it with lower tax rates. Well, maybe. The difficulty here, however, is that the catastrophic housing market decline has been one of the leading factors, if not the leading factor, in the world economic decline. Take away the mortgage-interest deduction and already plummeting property values would plummet further. Then what? Jobs anyone? I don’t think so.
Huntsman and the Mortgage-Interest Deduction