Comment by burlesona
3 days ago
There’s a strong historical case to be made that houses only cost what they do because they receive government insured mortgages and preferential tax treatment. The costs rise to consume the available funding.
3 days ago
There’s a strong historical case to be made that houses only cost what they do because they receive government insured mortgages and preferential tax treatment. The costs rise to consume the available funding.
The reason owner-occupied financing gets that tax benefit is to put owner-occupant buyers on a (more) equal footing with a commercial borrower as commercial interest is deductible as a business expense against income whether it’s startup costs, financing a factory, an airplane, or a rental house.
Perhaps interest should not be tax deductible. It's a huge subsidy to the banks and finance industry, which does not need any assistance, and has routinely caused destructive economic recessions.
I don't follow. How does a tax deduction for paid interest subsidize banks?
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