Costly, Regressive, and Ineffective: How Sensitive Is Public Support for the Mortgage Interest Deduction in the United States?

《Costly, Regressive, and Ineffective: How Sensitive Is Public Support for the Mortgage Interest Deduction in the United States?》

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关键字: homeownership; tax policy; mortgage interest deduction; framing effects; MECHANICAL TURK; POLICY RESPONSIVENESS; OPINION; IMPACT; INCOME

作者单位: [McCabe, Brian J.] Georgetown Univ, Dept Sociol, Washington, DC 20057 USA. McCabe, BJ (reprint author), Georgetown Univ, Dept Sociol, Washington, DC 20057 USA. E-Mail: Brian.McCabe@georgetown.edu

摘要: Although the mortgage interest deduction enjoys broad public support, critics argue that the policy disproportionately benefits wealthy households, fails to expand homeownership opportunities to households on the margins, and costs the federal government an extraordinary amount of money in foregone tax revenue. Drawing on data collected through an online experiment, this analysis tests the sensitivity of public support to these critiques. The findings reveal that support for the mortgage interest deduction declines when respondents are presented with information about the cost, effectiveness, or distribution of benefits associated with the deduction. Support among renters is more sensitive to framing effects than that among homeowners. Republicans are less sensitive to framing effects than Democrats when the deduction is framed as distributing benefits unequally, but more sensitive to these effects when the issue is framed as costly. However, all groups register their lowest level of support when told that the mortgage interest deduction is not an effective tool for expanding ownership opportunities.