Honest answer...
Mortgages should not be taxed, because, in reality, the bottom line, after all calculations are done, are either a reduction or an addition to the total you owed to government, and it all comes from your income. Mortgage taxes and the write-offs, are just a different way of masking the fact that, it's your total wealth that is being taxed, but mostly, your income and other earnings.
The basic fact is that, whatever one "gets back" from government, is something that should never have been taken away to being with. Government isn't subsidizing me through a mortgage deduction; government is just giving me back what they should never have taken from me in the first place.
Government would have a much harder time collecting taxes and fees, if they just lumped the whole thing into just one single amount payable at the end of the year. Then, there would be no more games with deductions and fees and taxes and taxes on taxes and so forth. Most people would be up-in-arms about how much the government takes from them, and government would be cut back down to size, and perhaps a size which most people could tolerate.
