Promoting Wealth Building through Homeownership
Current tax policies, while commonly thought to promote homeownership, have generally left low-income homeowners behind other homeowners. Using a number of simplifying assumptions, our estimates of lifetime homeowner tax subsidies suggest that the average homeowner in the lowest-income quintile may receive cumulative tax subsidies that are roughly one-thirteenth the size of those received by someone in the highest-income quintile. From an asset- and wealth-building perspective, the tax system thus places low-income households at a very large disadvantage – both in their quest to become homeowners and in what happens after they achieve homeownership status.
|Date of creation:||Jun 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Postal: Federal Hall, 30 N. 7th St., Room 318, Terre Haute IN 47809|
Web page: http://www2.indstate.edu/business/nfi/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Green, Richard K. & Vandell, Kerry D., 1999. "Giving households credit: How changes in the U.S. tax code could promote homeownership," Regional Science and Urban Economics, Elsevier, vol. 29(4), pages 419-444, July.
- Follain, James R. & Ling, David C., 1991. "The Federal Tax Subsidy to Housing and the Reduced Value of the Mortgage Interest Deduction," National Tax Journal, National Tax Association, vol. 44(2), pages 147-68, June.
- Kelly D. Edmiston & Kenneth Spong, 2012. "Tax Incentives for Homeownership and the Provision of Local Public Services," Public Finance Review, , vol. 40(1), pages 116-144, January.
When requesting a correction, please mention this item's handle: RePEc:nfi:nfiwps:2012-wp-04. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ray Thomas)
If references are entirely missing, you can add them using this form.