Fact Of The Day #40: Home Sweet Home Deduction (INFOGRAPHIC)

Key Relief For Homeowners Continues To Conract
This June 13, 2012, photo, shows a house for sale in San Diego. Mortgage buyer Freddie Mac said Thursday, June 14, 2012, that average rates on fixed mortgages rose this week, the first increase in seven weeks, but they remain near historic lows, boosting prospects for home sales this year. (AP Photo/Gregory Bull)
This June 13, 2012, photo, shows a house for sale in San Diego. Mortgage buyer Freddie Mac said Thursday, June 14, 2012, that average rates on fixed mortgages rose this week, the first increase in seven weeks, but they remain near historic lows, boosting prospects for home sales this year. (AP Photo/Gregory Bull)

Though the mortgage interest tax deduction is defended as a popular benefit, 69% of the total benefit in 2009 went to filers earning $100,000 or more. As the housing market slumped, the deduction has meant less to fewer taxpayers: in 2007 the breaks totaled $491 billion, but in 2009 it was down to $420 billion, or $11,515 per filer on average.

For a Congressional Budget Office estimate of the revenue boost from a gradual phaseout of the mortgage interest deduction, see today's infographic. Then join the discussion below: would a phaseout cool interest in homeownership even further?

mortgage tax deduction

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