Mortgage Deduction: America's Costliest Tax Break

This is a pretty interesting article discussing the numerous tax breaks that are the costliest to the U.S. government. The mortgage-interest deduction is America's favorite tax break. Between 2009 and 2013, the government will lose a whopping $600 billion because of it. The tax break enables individuals owning a first or second home to deduct the interest on up to $1 million in loans used to buy, build or improve the home. There are many proposals in place to simplify the income tax system, however, mortgage deduction is considered a sacred cow and deemed untouchable. While the deduction is seen as a big spur to housing sales, some think the generous deduction may have contributed to to an unstable rise in home prices.