The Second Home Deduction
Patrick – Interesting post. You may be right. But I would be really interested to see what the unintended consequences of getting rid of the deduction are. In theory, I have no problem with getting rid of it. And if we’ve got to look at loopholes to close, that’s as good as any (or at least most) as far as I’m concerned. Still, this is functionally not all that different than a targeted luxury tax. And luxury taxes tend to hurt the middle class people who make luxuries rather than the rich people who buy them. What happens to the already wobbly housing market and home-building industry after you get rid of a major incentive to buy a second home? I don’t know the answer, but I’m not sure it’s the easy fix some people think it is.