According to a recent recommendation by the Federal Commission, tax rebates on mortgages need to be eliminated, especially for the upper income brackets. It recommends that the rebates be provided to lower income home buyers. It makes a comparison of home ownership structure to that in the UK and Australia and finds it to be similar.
The logic of this recommendation is that those who can afford larger homes do not really need the rebates as they fall in upper income brackets. Effectively, a tax rebate is akin to a subsidy and it should be provided to those who need the support. Thus, tax rebates should be provided to those in the lower income brackets only.
The Commission points out that if no deductions are permitted in the UK and Australia, the deduction structure in the US also needs to be revamped.
