<<I view this mortgage interest deduction as direct subsidy from the U.S.Taxpayer to the mortgage banking industry.>>

Right you are. And as soon as more people understand that our current tax system is NOT a method by which to generate funds to run the government, but a polity for income redistribution, the sooner things may change for the better.

But don't just pick on home mortgage. The deduction of medical expenses are a subsidy to the AMA. Charity subsidizes the various organizations that do good works throughout the country. The tax exemption on municipal bonds provides a subsidy to the various state and local governments.

You can view virtually EVERY tax deduction or credit as a subsidy to one organization or another. Some you like. Some you don't. Some fit with your political view of things, some don't. So you (the editorial "you"...don't take this personally) generally want to keep the ones you like, and git rid of the ones that you don't like or have no impact on your taxes.

Until the folks in Congress decide to make the hard decisions, expect things to remain this way. Too bad.

TMF Taxes
Roy Lewis