OECD Urges US to Scrap Deductions for Mortgage Interest and SALT

The US should phase out its tax deductions for mortgage interest and state and local taxes, which can erode revenues and have unwanted economic consequences, the Organization for Economic Cooperation and Development said Wednesday.

The mortgage interest and SALT deductions are “distortions” in the tax code, and eliminating them would broaden the US’s tax base and raise more revenue while fostering greater equality, the OECD said in its biennial economic survey of the US.

• Both the mortgage interest deduction and the SALT deduction are “highly regressive,” the OECD said, and the mortgage interest deduction disproportionately favors white households while ...