Did U.S. Tax Policy Contribute to the Housing Bubble?

BY Business Desk  June 26, 2009 at 11:31 AM EST

bubble; via Flickr

Question: How much does (did) federal tax policy contribute to the housing bubble? If it was a contributing factor, how should that policy be reformed?

Paul Solman: Not much, I wouldn’t think. Tax deductibility of mortgage interest has been around since the advent of the income tax itself, early in the 20th century. It predates the bubble by almost a century.