Posts Tagged ‘housing’

Rethinking Homeownership Subsidies

Tax expenditures for homeownership, such as deductions for mortgage interest and property taxes and the partial exclusion for capital gains on the sale of a primary residence, have long been recognized as ineffective, regressive, and extraordinarily expensive—costing $121 billion in 2013 alone. Until now, most reforms—including the Bowles-Simpson deficit-reduction plan—have focused on restructuring the mortgage […]

What Changes in the Mortgage Deduction Would Mean for Home Prices

Tax preferences for housing are under fire, with mounting evidence that these preferences are inefficient, unequal, and too expensive to warrant a place in the tax code. Critics of proposed changes in the tax treatment of home ownership argue that these reforms would slash home prices at the very time they are showing signs of […]

Is This a Good Time to Reform the Mortgage Interest Deduction?

Housing industry lobbyists often make the case that, whatever you think of the mortgage interest deduction, now would be a terrible time to eliminate or restructure the subsidy. After all, they say, the housing market remains so shaky that ending the deduction would send home prices back into a tailspin. However, there is a contrary […]

Unearned Interest in the Homebuyer Tax Credit

Taxpayers who took the 2008 tax credit for new homebuyers were unhappy when Congress made the credit much more generous in 2009. People who bought homes in 2008 have to repay the $7,500 credit over 15 years. Those who bought in 2009 or 2010 don’t have to pay their credits back. It turns out that […]

What Would Happen if Congress Rewrote the Mortgage Interest Deduction?

The deduction for interest on home mortgages may be the most beloved of all tax subsidies. A politician needs only to muse about repealing or restructuring the deduction to be set upon by suburban mobs (led, perhaps, by real estate agents and mortgage lenders). But a new analysis by my Tax Policy Center colleagues Ridathi Chakravarti […]