Prior to the Tax Reform Act of 1986 (TRA86), the interest on all personal loans (including credit card debt) was deductible. TRA86 eliminated that broad deduction, but created the narrower home mortgage interest deduction under the theory that it would encourage home ownership.[1]
Basicly housing has been subsidized relative to other purchaces. EX: A 55" TV included with a new home costs a lot less than one paid for with credit cards.
Prior to the Tax Reform Act of 1986 (TRA86), the interest on all personal loans (including credit card debt) was deductible. TRA86 eliminated that broad deduction, but created the narrower home mortgage interest deduction under the theory that it would encourage home ownership.[1]
Basicly housing has been subsidized relative to other purchaces. EX: A 55" TV included with a new home costs a lot less than one paid for with credit cards.