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Debunking 3 Myths About the Mortgage Interest Deduction

In 2017—as part of the Tax Cuts and Jobs Act (TCJA)—Congress limited the mortgage interest deduction (MID) by reducing what can be deducted to interest paid on the first $750,00 in principal value, down from $1 million. The decision to curtail the deduction’s limit by 25 percent was partly due to budgetary constraints imposed by […]

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Phase 4 Is not the Time to Experiment with Temporary Credits

Members of Congress are on a two-week recess before returning to consider a possible “phase 4” package to boost the economy and help individuals and businesses suffering from the economic effects of the most significant pandemic in the last century. Policymakers may be tempted to reach into the tax code to find a solution to […]

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Three Reasons Expanding Credits Aren’t the Best Pandemic Response for the Vulnerable

Tax policy wonks often advocate for increases in refundable tax credits (e.g., Child Tax Credit, CTC and Earned Income Tax Credit, EITC) and nonrefundable tax credits (Child and Dependent Care Tax Credit, CDCTC) as one solution to help low-income Americans. Arguments in favor of expanding these tax credits appear during economic expansions and contractions alike. […]