--- Tigger <[EMAIL PROTECTED]> wrote:
> I support an alternate way for the gov't to support housebuying:
> 50% tax credit on house payments (interest and principle), with
> some lifetime maximum ($2, 3, 400 000?).
> Tom

This tax-credit subsidy will add to demand and further increase the price
of housing, which then requires a bigger credit.  The credit reduces tax
revenue, and so for a given budget, other taxes get increased, so the
result is further distortion of prices and a greater excess burden on the
economy.  This treats the symptom rather than cure the cause.

Fred Foldvary


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