While funds for low-income subsidized housing languish, much larger pots of money are set aside for promoting homeownership through subsidies like the mortgage interest deduction and capital gains exemption, most of which goes to upper-middle- or upper-class households.
Looking for reasons why house price increases outpace inflation? These two US tax policies are a big part of the answer.
Commentators bewailing the high price of housing and wealth inequality rarely even discuss these two massive giveaways. Deficit hawks rarely point to the mind-boggling amount of tax revenue left on the table by this federal government dole.
Ending the mortgage deduction and the capital gains exemption would be a very effective and quick way to bring about housing affordability and promote wealth equality.
But any representative proposing such a solution would be committing political suicide today. Still, it's interesting to think about the conditions that might be necessary to force a change in sentiment on the issue.
Looking for reasons why house price increases outpace inflation? These two US tax policies are a big part of the answer.
Commentators bewailing the high price of housing and wealth inequality rarely even discuss these two massive giveaways. Deficit hawks rarely point to the mind-boggling amount of tax revenue left on the table by this federal government dole.
Ending the mortgage deduction and the capital gains exemption would be a very effective and quick way to bring about housing affordability and promote wealth equality.
But any representative proposing such a solution would be committing political suicide today. Still, it's interesting to think about the conditions that might be necessary to force a change in sentiment on the issue.