However, numerous middle class taxpayers currently take the mortgage interest deduction, which increases their disposable personal income that can be spent on consumer goods, stimulating the economy.From a macro POV this isn't correct. The mortgage interest deduction has been in place for decades. Therefore, it's a baked in part of the tax code and personal spending decisions, which means it's baked into the equilibrium of the economy. In other words, spending decisions related to it are already part of the status quo.So the correct way to phrase your statement is "However, numerous middle class taxpayers currently take the mortgage interest deduction, which increases their disposable personal income that can be spent on consumer goods, maintaining the economy." This is a common mistake, especially around infrastructure spending and unemployment benefits.The Macroeconomic effect of repeal of the mortgage interest deduction would be diversion of spending from consumer goods to taxes, slowing the economy.You can't say this for sure. For starters, plans that have called for the MID to be eliminated come with lower rates to make them revenue neutral. Meaning that most families won't see a change to their tax bill.
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