Mortgage interest deduction subsidizes housing

“What would you do if you had $1 million? Believe it or not, some of you might live in government-subsidized housing.” That was the pre-ad lead in to a story on the Fox News Grapevine Show 18 August 2015, which was not about the hugely more expensive mortgage interest deduction, which costs over $400 billion over five years.  That’s a huge government subsidy for housing. Here’s the transcript:

Helping Hand

You — the taxpayer — are subsidizing more than 25,000 families in public housing — even though they exceed the income limits.

An Inspector General’s report estimates that $104 million will be spent over the next year on ineligible households — while hundreds of thousands of low-income families– are stuck on the waiting list.

Some of the disturbing examples–

A New York family with annual income of nearly a half-million dollars — lives in public housing — and has been over the limit for five years.

In the Big Apple alone — more than 300,000 families are on the waiting list.

In Nebraska — a tenant has assets worth $1.6 million — and lives in a subsidized apartment — paying only $300 a month.

The government only requires tenants to be under the income limit during the application process.

There is no requirement to remove over-income families — a loophole the IG– wants the government to close.

http://www.foxnews.com/transcript/2015/08/18/grapevine-taxpayers-help-ineligible-public-housing-families/

Mortgage interest deduction cost of $405.2 billion over five years is on page 26 of https://www.jct.gov/publications.html?func=startdown&id=4663

 

Advertisements

Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s