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>60% of homeowners are in debt on their house, though. So they are getting appreciation on leverage. I would argue the median homeowner is being subsidized, h
by onlyrealcuzzo 5y ago
>60% of homeowners are in debt on their house, though.
So they are getting appreciation on leverage.
I would argue the median homeowner is being subsidized, having a negative wealth tax.
The local government takes away 1%, but the Federal government pumps up your asset price by >2% - that's a -1% wealth tax (paid entirely through inflation by non-homeowners).
- jeffbee 5y agoYes, there are many exemptions in tax policy for real estate. We exempt the first $500k of gains from income taxes, for example. And our whole society is structured around "building equity" i.e. making housing cost more.
- deleted 5y ago[deleted]