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The main argument is that richer people buy more expensive houses and get bigger deduction then lower income people and basically lower income people are subsid
by wehadfun 9y ago
The main argument is that richer people buy more expensive houses and get bigger deduction then lower income people and basically lower income people are subsiding rich people mansions. BUT there is a cap which I would guess would work good enough to mitigate this.
- harryh 9y agoAlso people who buy are subsidized by those who rent. We don't need a cap, the deduction shouldn't exist at all. In fact, homeowners should pay taxes on imputed rent like they do in The Netherlands, Iceland & Switzerland.
- JBlue42 9y ago>pay taxes on imputed rent What does this mean? Rent that the home would go for?
- harryh 9y agoYes. https://en.wikipedia.org/wiki/Imputed_rent https://en.wikipedia.org/wiki/Imputed_rent
- JBlue42 9y agoThanks. I wonder how that would work out in LA where we already have high rents, high houses prices, and lower wages. I don't quite know how much one can deduct off their mortgage in taxes but I would assume the imputed rent would be a similar amount in such a market?
- deleted 9y ago[deleted]