The Tax Treatment of Homeownership
Author: Joshua E. Greene
Publisher:
Published: 1981
Total Pages: 100
ISBN-13:
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Author: Joshua E. Greene
Publisher:
Published: 1981
Total Pages: 100
ISBN-13:
DOWNLOAD EBOOKAuthor: Matthew Chambers
Publisher:
Published: 2007
Total Pages:
ISBN-13:
DOWNLOAD EBOOK"This paper analyzes the connection between the asymmetric tax treatment of homeowners and landlords and the progressivity of income taxation using a quantitative overlapping generations general equilibrium model with housing and rental markets. Our model emphasizes the determinants of tenure choice (own vs. rent) and the household decision to supply housing services to the rental market. This formulation breaks the link between the rental price and the equilibrium interest rate and, hence, the aggregate supply of rental property responds differently to the direction of rental price changes, marginal tax rate changes, and maintenance cost changes. We show that the model replicates the key factors and the distributional patterns of ownership, house size, and landlords. The degree of progressivity in the income tax code has important implications for housing tenure and housing consumption. We find a movement toward a less progressive income tax code can generate sizeable increases in homeownership and welfare that result from the equilibrium effects and a portfolio reallocation mechanism absent in economies with a single asset (i.e. Conesa and Krueger (2006)). An examination of the removal of existing asymmetries in the tax code are found to have effects on housing that differ from those reported in the literature. We show that housing policy can increase the ownership rate of a particular segment of the population, but generate nontrivial distributional costs. The welfare increases are no larger than those found when the progressivity of the tax code is reduced"--Federal Reserve Bank of St. Louis web site.
Author: Paul Cohn
Publisher:
Published: 1992
Total Pages:
ISBN-13:
DOWNLOAD EBOOKAuthor: Paul Edward Merz
Publisher:
Published: 1961
Total Pages: 174
ISBN-13:
DOWNLOAD EBOOKAuthor: Richard E. Slitor
Publisher:
Published: 1968
Total Pages: 176
ISBN-13:
DOWNLOAD EBOOKAuthor: Matthew Chambers
Publisher:
Published: 2014
Total Pages: 42
ISBN-13:
DOWNLOAD EBOOKThis paper analyzes the connection between the asymmetric tax treatment of homeowners and landlords and the progressivity of income taxation using a quantitative overlapping generations general equilibrium model with housing and rental markets. Our model emphasizes the determinants of tenure choice (own vs. rent) and the household decision to supply housing services to the rental market. This formulation breaks the link between the rental price and the equilibrium interest rate and, hence, the aggregate supply of rental property responds differently to the direction of rental price changes, marginal tax rate changes, and maintenance cost changes. We show that the model replicates the key factors and the distributional patterns of ownership, house size, and landlords. The degree of progressivity in the income tax code has important implications for housing tenure and housing consumption. We find a movement toward a less progressive income tax code can generate sizeable increases in homeownership and welfare that result from the equilibrium effects and a portfolio reallocation mechanism absent in economies with a single asset (i.e. Conesa and Krueger (2006)). An examination of the removal of existing asymmetries in the tax code are found to have effects on housing that differ from those reported in the literature. We show that housing policy can increase the ownership rate of a particular segment of the population, but generate nontrivial distributional costs. The welfare increases are no larger than those found when the progressivity of the tax code is reduced.
Author: United States. Congress. Joint Committee on Housing
Publisher:
Published: 1948
Total Pages: 36
ISBN-13:
DOWNLOAD EBOOKAuthor: Henry J. Aaron
Publisher:
Published: 1971
Total Pages: 24
ISBN-13:
DOWNLOAD EBOOKAuthor: Krister Andersson
Publisher: International Monetary Fund
Published: 1990-10-01
Total Pages: 38
ISBN-13: 1451948808
DOWNLOAD EBOOKIt is well known that the preferential tax treatment of housing induces an inefficient allocation of saving and investment. This paper analyzes, in a portfolio framework, how eliminating the deductibility of mortgage interest payments for federal income tax purposes might affect investment in housing. Expected rate of return and risk is estimated for three assets, bonds, housing, and stocks. The possibility that assets are imperfect substitutes is explicitly recognized in one section of the paper. The model suggests that the share of housing is likely to decrease by 4 to 9 percentage points if mortgage interest payments are not deductible. This may call for careful phasing of the change in policy.