--- 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 ===== [EMAIL PROTECTED]
