What is the impact of losing the Mortgage Deduction?

With all the talk about limiting tax loopholes and simplifying our income tax system, ther eis bi-partisen support for elimination of the home interest tax credit. Few in the real estate or lending industry want the government to do away with the mortgage interest tax deduction. It is interesting to note , the deduction a) is rare in other countries, b) has a much larger perceived benefit than actual benefit. Besides, a move will probably be gradual. They'll probably go from $1 million down to $500k, making it politically acceptable. Lastly, "The Mortgage Interest Deduction is of limited value because of low rates and low house prices. A $300,000 house with a 30-year mortgage at 3.25% pays just $7,800 in mortgage interest, yet the 2012 standard deduction is $11,900 if married filing jointly. If the MID is nixed, placing your house into a corporation and having the corporation rent the home to you, allows you to continue deducting all mortgage interest." (So wrote economist Elliot F. Eisenberg - if you want to receive his free 70 word updates shoot him an e-mail at elliot@graphsandlaughs.net.)