The mortgage interest deduction has got to go

This is the Weekend Edition of Bloomberg Opinion Today, a roundup of the most popular stories Bloomberg Opinion publishes each week based on [Bloomberg]( This is the Weekend Edition of Bloomberg Opinion Today, a roundup of the most popular stories Bloomberg Opinion publishes each week based on web readership. New subscribers can [sign up here](. [After Exposing Realtors, Eliminate the Mortgage Interest Deduction]( — Kathryn Edwards Photographer: David Ryder/Bloomberg The National Association of Realtors has agreed to pay about [$418 million to settle litigation]( related to how real estate agents set commission rates, an arrangement that many experts said inflated housing prices and exacerbated the affordability crisis. With this settlement in hand, now is the perfect time to take on that other inflator of home prices: the mortgage interest deduction. The simple fact is that the mortgage interest deduction does not increase homeownership and was not created with that goal in mind. It is a holdover from tax policy dating back to 1913 to deduct all interest expense from income, a policy intended for businesses and farms. The 1986 tax reform limited personal interest deductions to mortgages (but adding a cap), [arguably because]( President Ronald Reagan and Congress were not willing to take on the likely pushback from the National Association of Realtors and homeowners who enjoyed the deduction. Doing away with the mortgage interest deduction is an actionable policy the federal government can take in an area that matters deeply to Americans but whose problems and solutions are mostly local. As [the White House]( acknowledges, the shortage of housing stems largely from local zoning laws that restrict supply and construction costs. To the extent the federal government can tip the scale, even just a little, in favor of consumers it would be a win. Read the [whole thing]( (free read). [‘Billionaire Raj’ Is Pushing India Toward Autocracy]( — Andy Mukherjee [House GOP Resignations Send a Very Clear Message]( — Patricia Lopez [China’s Flight Suspensions Are Bad for Singapore Ties]( — Tim Culpan [Beyoncé’s Album Cover Makes Complete Sense to Black Texans]( — Taylor Crumpton [Who Will Save the US Wine Industry? Not California Boomers]( — Justin Fox [Resistance Is Futile, But Maybe Not With AI]( — Niall Ferguson [Modi’s Big Bet on Musk in India Might Just Work]( — Mihir Sharma [Putin Forgot Islamic State Thinks He’s Part of the West]( — Marc Champion [Hong Kong Property Tycoons Are Selling Super Call Options]( — Shuli Ren More From Bloomberg Opinion Here’s what we’ve been listening to and watching this week. - Unilever is [spinning off Ben and Jerry’s](. Andrea Felsted says that’s a smart choice. - John Authers and Jonathan Levin on [post-pandemic inflation and interest rates](: How will the world’s central banks climb down from the mountain? Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Opinion Today newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](