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My suggestion to spend on housing is obviously to build more supply, not to bid up existing stock. Bidding up existing stock is exactly what the profligate mone

My suggestion to spend on housing is obviously to build more supply, not to bid up existing stock. Bidding up existing stock is exactly what the profligate monetary policy of the past two decades has done. Yes, the prices of construction materials will go up. This is called a price signal, indicating that more of a thing is needed. I personally will not be happy about higher prices. But the pain created by this is due to economic damage that has already occurred and needs to be realized, rather than continuing to kick the can down the road as it has been. I'm ambivalent about the mortgage interest tax deduction. People act like it's some amazing cut-from-whole-cloth subsidy, but from a business context it's just a regular straightforward deduction of a customary expense.

lotsofpulp 3y ago
> I'm ambivalent about the mortgage interest tax deduction. People act like it's some amazing cut-from-whole-cloth subsidy, but from a business context it's just a regular straightforward deduction of a customary expense. Then why isn’t there a deduction for everything else we buy? It is a handout to real estate owners and lenders, and has zero reason to exist. If the government wants to help people who do not have enough money, the government should give them cash. Or a home, if that is the goal.
- lotsoweiners 3y ago
  Most homeowners use the standard deduction now for about the past five years. This is a result of a tax policy change by the Trump administration.
  - lotsofpulp 3y ago
    Standard deduction is incomparable to a specific deduction. A standard deduction is simply lowering tax rates for everyone.
- mindslight 3y ago
  Philosophically, I think W2 workers should be able to deduct all of the expenses that are necessary and proper to earn one's income - commuting, professional clothes, a portion of food and housing, etc. What makes it a pragmatic non-starter is that it pushes individuals into even more accounting minutiae, which is its own form of horrible. Also keep in mind that interest on a loan is being reported as income elsewhere, so it is being taxed. It's just being taxed one less time. Politically, I don't see the point of singling out people who aren't short housing (aka they own one home) but still have a mortgage. Remember with rental properties all expenses are straightforwardly deductible (or depreciable), because revenue that pays expenses is distinct from income.
scotty79 3y ago
Also progressively tax holding the large amounts of existing stock. Government has so many tools to absolutely screw over the incumbent freeloaders. It won't because it consists of and is paid by incumbent real estate freeloaders. Don't you wonder why almost nobody nowadays heard about land value tax despite it being super prominent idea century ago or so?

lotsofpulp 3y ago

> I'm ambivalent about the mortgage interest tax deduction. People act like it's some amazing cut-from-whole-cloth subsidy, but from a business context it's just a regular straightforward deduction of a customary expense. Then why isn’t there a deduction for everything else we buy? It is a handout to real estate owners and lenders, and has zero reason to exist. If the government wants to help people who do not have enough money, the government should give them cash. Or a home, if that is the goal.

lotsoweiners 3y ago
Most homeowners use the standard deduction now for about the past five years. This is a result of a tax policy change by the Trump administration.
- lotsofpulp 3y ago
  Standard deduction is incomparable to a specific deduction. A standard deduction is simply lowering tax rates for everyone.
mindslight 3y ago
Philosophically, I think W2 workers should be able to deduct all of the expenses that are necessary and proper to earn one's income - commuting, professional clothes, a portion of food and housing, etc. What makes it a pragmatic non-starter is that it pushes individuals into even more accounting minutiae, which is its own form of horrible. Also keep in mind that interest on a loan is being reported as income elsewhere, so it is being taxed. It's just being taxed one less time. Politically, I don't see the point of singling out people who aren't short housing (aka they own one home) but still have a mortgage. Remember with rental properties all expenses are straightforwardly deductible (or depreciable), because revenue that pays expenses is distinct from income.

scotty79 3y ago

Also progressively tax holding the large amounts of existing stock. Government has so many tools to absolutely screw over the incumbent freeloaders. It won't because it consists of and is paid by incumbent real estate freeloaders. Don't you wonder why almost nobody nowadays heard about land value tax despite it being super prominent idea century ago or so?