Saving the US Economy - the Canadian Way

Started by Barrister, December 11, 2009, 06:07:41 PM

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The Minsky Moment

#75
December 14, 2009, 06:59:09 PM
Alfred-

What you are missing is that the US does not tax the imputed rental value of owner-occupied housing.  If the US code did so, then I would agree that the mortgage interest deduction would be justified to create parity of treatment with commercial RE.  But it doesn't, and therefore the deduction is simply a pure subsidy that inflates residential housing prices.
The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists.
--Joan Robinson

alfred russel

#76
December 15, 2009, 10:37:01 AM
Quote from: The Minsky Moment on December 14, 2009, 06:59:09 PM
Alfred-

What you are missing is that the US does not tax the imputed rental value of owner-occupied housing.  If the US code did so, then I would agree that the mortgage interest deduction would be justified to create parity of treatment with commercial RE.  But it doesn't, and therefore the deduction is simply a pure subsidy that inflates residential housing prices.

You are right and I am wrong.

The one case where I have a point is if the investment property is losing money (rental income doesn't offset the costs of ownership), but there are rules against passive activity losses on real estate (though there are ways around that problem).
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.

There's a fine line between salvation and drinking poison in the jungle.

I'm embarrassed. I've been making the mistake of associating with you. It won't happen again. :)
-garbon, February 23, 2014

PDH

#77
December 15, 2009, 11:08:52 AM
Quote from: alfred russel on December 15, 2009, 10:37:01 AM
You are right and I am wrong.
This is the worst thing I have ever read on Languish. For SHAME!
I have come to believe that the whole world is an enigma, a harmless enigma that is made terrible by our own mad attempt to interpret it as though it had an underlying truth.
-Umberto Eco

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"I'm pretty sure my level of depression has nothing to do with how much of a fucking asshole you are."

-CdM
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