~> It wasn't that long ago that all interest was deductible.  One downside 
~> of removing the deduction, is more government double taxation.  You pay 
~> taxes on your interest payment and the recipient also pays taxes on it 
~> as income.

Yeah, that was a nice luxury back when even CREDIT CARD interest could be
deducted.  But it was still a case of the general body of taxpayers
subsidizing the debt of some.

The double-taxation argument works on dividend income, but not on interest
deductions.  No one pays tax on their interest expenses.  They pay tax on
their income, and then they spend or save from their after-tax income. 
Paying interest on a loan is just a regular expenditure.  I can understand
the motivation behind the mortgage deduction, just like I can understand
why some like the idea of deductions for student loans.  But it costs well
over a hundred billion to encourage people to take out a mortgage (or to
move up to a more expensive house than they would buy without the
deduction).  That's a lot of money for a small result.
 
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