Replace the Mortgage Interest Deduction with a Homeowner Tax Credit
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- Well Being In the Nation Network
The mortgage interest tax deduction adds up to more than $70 billion annually. This tax deduction tends to benefit higher-income families and white people more than black people. This is because higher home ownership rates in those groups. Seventy percent of this tax deduction goes to the top 20% of earners. Less than two percent goes to the bottom 40% of earners. Fixed, refundable tax credits would reduce the tax benefit of mortgages for higher-income households. These tax credits would maintain or expand the benefits for many lower-income households.