Canada and France are two of the few countries where mortgage interest payments are not deductible from personal income in the calculation of tax liability.3 Mortgage interest deductions are phased out in the United Kingdom, and Finland and Ireland are eliminating them gradually over time. In all countries, governments were advised to either take steps to tax imputed rent, or to eliminate the deductibility of mortgage interest. First, property taxes tend to be unpopular, and the political economy challenges surrounding any increase in their share are obviously delicate.4 Where property taxes are an important source of local government revenue, policy recommendations to national authorities to effect a revenue-neutral shift toward property taxes ought to be accompanied by compensatory schemes that are feasible within the country’s intergovernmental fiscal framework.