Overall, the tax bill is terrible for all the obvious reasons. It does have one redeeming aspect: Reducing the tax system’s bias in favor of owner-occupied housing. The mortgage interest deduction and related provisions in the federal tax code unwisely favor home owners over renters, encouraging families to buy more expensive homes–using larger mortgages–than is wise from any economic perspective.
Reducing this bias by capping the mortgage interest deduction and enlarging the standard deduction is good policy. Maybe this is the only good aspect of this dog’s breakfast of a regressive and irresponsible bill.
Democrats should junk virtually everything in this tax bill if they take over the federal government in January 2021. They should keep these two provisions–even if Republicans enacted them in a mean-spirited effort to hammer wealthy blue states.