The inflationary impact of Harris’s proposed housing subsidies may be an intended effect rather than an unintended consequence. I wouldn’t expect first time home buyers to be major campaign contributors, but the people selling the houses likely are.
A better way, or at least a more cost-effective way to promote affordable housing would be to quit subsidizing the unaffordable kind. Existing tax expenditures don’t help first-time home buyers so much as they encourage existing owners to trade up. They also give the wealthy a tax-efficient way to borrow against equity as an income stream instead of selling property or appreciated stocks, so that assets can be passed to the next generation untaxed.
Good articles today.
The inflationary impact of Harris’s proposed housing subsidies may be an intended effect rather than an unintended consequence. I wouldn’t expect first time home buyers to be major campaign contributors, but the people selling the houses likely are.
A better way, or at least a more cost-effective way to promote affordable housing would be to quit subsidizing the unaffordable kind. Existing tax expenditures don’t help first-time home buyers so much as they encourage existing owners to trade up. They also give the wealthy a tax-efficient way to borrow against equity as an income stream instead of selling property or appreciated stocks, so that assets can be passed to the next generation untaxed.