Re "The mortgage tax break doesn't help homebuyers" (Forum, March 9): Over last several years, the Federal Reserve has spent around $3.25 trillion to stabilize home prices, which prevented the collapse of the American banking system that prevented the country from slipping into a 1929 style depression.
Now, author David Cay Johnston is proposing the elimination of the mortgage interest tax deduction, while admitting that it will reduce the prices of homes by around 25 percent. This will jeopardize the American Economy and require another costly bailout by the government.
The permanent reduction in home prices would adversely affect the revenue of the local government, resulting in layoffs and lead to higher property tax rates. States with high home prices such as California would get hurt more than those with lower home prices. The mortgage interest tax break is a middle class tax deduction that should be left untouched.
-- Narendra Khilnani, Lincoln