Dennis J. Ventry, Jr. (UC-Davis) presents The Accidental Deduction: A History of the Tax Subsidy for Mortgage Interest at Loyola-L.A. today as part of its Tax Policy Colloquium Series.   The commentator is Roberta Mann (Oregon).  Here is the abstract:

This Article traces the mortgage interest deduction (MID) from accident to birthright, from one of many deductible personal interest items to one of the few left standing, and from a negligible tax offset to the second most expensive tax subsidy. It also tells the story of how the MID and other federal housing subsidies fueled the post-World War II surge in rates of homeownership and, more recently, contributed to the collapse of the housing and financial markets. Finally, the Article offers a eulogy to the MID reflecting two generations of tax reformers’ criticism of the subsidy that is more applicable today than at any time during its nearly 100-year history.