Cohn Says New Mortgage Deduction Limit Won’t Hurt Housing Market

The House tax bill’s proposal to limit the mortgage interest deduction for new purchases of homes won’t crimp the housing market, said White House Economic Adviser Gary Cohn. “The ability to deduct interest is a component that allows you to buy a bigger house, not what drives you to buy a house,” Cohn said during a Bloomberg Television interview Friday. The tax-overhaul bill released Thursday included an unexpected provision that would cap the mortgage-interest deduction on home sales at $500,000 — a departure from the current cap of $1 million for couples filing jointly.

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Source: Bloomberg

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