FDIC's Bair questions housing tax breaks - Street Sweep: Fortune's Wall Street BlogBair took aim at federal tax deductions for mortgage interest, local property taxes, and capital gains on house sales (in certain circumstances). She said these taxpayer subsidies for homeowners, taken together, "are about three times the size of all rental subsidies and tax incentives combined."
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Why don't we just put all our money in a paper bag and send it to President Obama to do with as he sees fit?
1 comment:
Not that I am promoting taxes, however, I would like to make one point.
The deduction for mortgage interest facilitates higher, unsustainable prices for homes. Much like a taxpayer deduction for health insurance. Those deductions get captured at least in part by the industry in the form of higher prices. The consumer thinks he's better off but not really because he paid a higher price. It seems that any time a deduction is permitted, the seller tries to capture a part of that in some fashion.
It's a second best world, so anything can happen while tinkerers set out to "fix" it.
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