2 ms·
My microecon is a little rusty but isn't the second problem essentially a wash? It seems that the shadow tax should never exceed the mortgage interest deduction
by dfc 14y ago
My microecon is a little rusty but isn't the second problem essentially a wash? It seems that the shadow tax should never exceed the mortgage interest deduction (assuming rational markets).
- danielweber 14y agoTo a first approximation, the MID pushes up the costs of housing by as much as the tax deduction. Making it entirely useless for "encouraging home ownership."