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On the political economy side, it’s unlikely that we will displace things like the mortgage interest deduction. What if we were to introduce a renters’ deductio
by mwsherman 11y ago
On the political economy side, it’s unlikely that we will displace things like the mortgage interest deduction. What if we were to introduce a renters’ deduction instead?
- eru 11y agoThey have something interesting in Switzerland, called Eigenmietwert (https://de.wikipedia.org/wiki/Eigenmietwert https://de.wikipedia.org/wiki/Eigenmietwert). Alas, no English Wikipedia article. The idea is like that: on the one hand renters pay rent with post-tax money. But owners pay mortgages with pre-tax money. To equalize the two situations, owners-occupiers get taxed on the virtual income they are at once producing and consuming---ie they are taxed as if they were renting to themselves.