The Scandal of Mansion Subsidies

The Scandal of Mansion Subsidies

Most Americans think that federal housing assistance is a poor people’s program. In fact, fewer than one-fifth of all low-income Americans receive
federal housing subsidies. In contrast, more than three-quarters of wealthy Americans—some with two expensive homes—get housing aid from Washington

The federal tax code allows homeowners to deduct all property tax and mortgage interest from their income taxes. This homeowner deduction will cost the federal government over $47 billion in 1991, according to a new Joint Taxation Committee (JTC) analysis of “tax expenditures.” This amount is more than five times President Bush’s HUD(Housing and Urban Development) budget for low-income housing. Eliminating this tax break for
the wealthy—while still preserving it for the middle class—could provide substantial money to finance housing assistance for low-income families.

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