After all, REITs do have preferential tax treatment From government's revenue point of view it should be nutral right? Of course they forgo revenue by charging lower inividual rate and when they are held within tax-advantaged account. It would be interesting to know how much total REIT dividends are and then we can figure out how much is the revenue lost by government. I guess if they are touching mortgage deduction then this one will certainly take a hit.
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