Gang of Six and the Housing Market

There aren't a lot of details about the Gang of Six debt proposal, but apparently it includes cutting or eliminating the home mortgage interest deduction. There's a good case to be for eliminating the home mortgage interest deduction. But regardless of whether the deduction should go, I question the timing. Cutting or eliminating the deduction isn't going to help stabilize the housing market.

I worry about major legislative changes via budget deals that haven't had a chance to benefit from a public airing. We require notice and comment periods for regulatory rule-makings. It seems ill-advised to undertake more significant reforms without the benefit of public input. Yes, there's a default clock running, but there's a much simpler and less risky way to avoid that--increase the debt ceiling enough to enable a public debate on the long-term solution.