Senior Policy Analyst
Lawmakers considering federal tax reform proposals should take this opportunity to rebalance housing subsidies to better align spending with need, as I recently explained on the National Housing Institute’s Shelterforce blog.
The federal government spent $270 billion in 2012 on tax breaks and direct spending to help families buy or rent housing. But most of that spending was on homeownership subsidies — like the mortgage interest deduction — that mainly benefit higher-income families, who would rarely struggle to afford homes without help (see chart). Meanwhile, the number of low-income families — especially renters — paying very high shares of their income for housing has grown rapidly.
As I explain in the post, Congress should take two steps as part of tax reform to rebalance the nation’s housing policy:
Click here to read the full post.