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Mortgage interest deduction possible solution for federal budget

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The Hamilton Project, an economic policy initiative at the Brookings Institution, invited 15 economists of different philosophies to submit proposals for rethinking the Federal Budget.  In the eighth of the resulting papers Alan Viard, Resident Scholar, American Enterprise Institute, proposed to replace the mortgage interest deduction with a refundable credit to reduce the artificial incentive for the construction of high-end homes by better targeting the tax breaks for housing.

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