That’s the concern amongst Realtor-types — and anyone else who has a vested interest in the health of the housing market.
Which really means . . . everyone.
I think there is a strong, two-part argument for leaving it alone: 1) don’t do anything to effectively make housing more expensive, while it’s still in recovery mode; and 2) something called “settled expectations” — namely, millions of homeowners have made purchase decisions factoring in the value of the deduction.
I’m certainly not privy to what’s being negotiated in Washington.
But, here’s a safe prediction: any eventual scaling back of the deduction is likely to reflect a compromise.
Translation: look for phasing out, means-testing, a lower cap, etc.
