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| And mortgage interest is tax deductible. In some jurisdictions. Not Canada.
by robotresearcher 13y ago
| And mortgage interest is tax deductible.
In some jurisdictions. Not Canada.
- declan 13y agoQuite right. What's interesting is that the Canadian homeownership rate is similar to that of the U.S., last I checked, even despite the different tax treatments.
- robotresearcher 13y agoMy theory on this is that the prices adjust to cancel out the benefit from the tax break. The out-of-pocket expense to the buyer is the same and the general taxpayer is subsidizing a higher price for sellers. It's a cash transfer from taxpayers to established landowners cunningly disguised as a legup for the middle class. I think the prices must adjust in this way since the supply of housing close to the supply of paid work is limited. If anyone can point me to a decent analysis of this, I'd be grateful. But this is my pet theory.
- bradleyjg 13y agoDo they tax the forgone rental income from owner occupied housing? I know Switzerland does.