AFSCME 3357-HOF'S BLOG

Can you have Too Many Homeowners?

The linked article from the New York Times (free registration required) looks at the philosophical arguments for limiting incentives for homeownership. Government homeowner subsidies through the tax code run about $100 billion per year, a little less than what we are spending on the Iraq war. I wonder how many of those who favor the Iraq war would still favor it if they had to give up their entire mortgage deduction and state tax deduction to pay for it?

The NYT should have also mentioned that by encouraging homeownership, the government is also encouraging urban sprawl and commuting, very energy-consumptive behaviors. Without the tax break, people would generally delay buying homes until they are in a stable long-term job, and would likely tend to live closer to where they work.