Viewing a single comment thread. View all comments

DoobieBrotherhood t1_it9hs0s wrote

Reply to comment by hacksoncode in Many countries have a "hidden welfare state" for incumbent homeowners, as governments subsidize homeowners through the tax system. The homeownership welfare state is strongest in the US and other Anglophone countries, but weakest in the Scandinavian countries. by smurfyjenkins

The building of the home, marketing of the home, selling of the home — hell, every expense of every business that touches the home is tax deductible.

The deductibility of business expenses is not a subsidy, although that is a point worth arguing in a different conversation (it involves looking at whether we should encourage or discourage vertical integration and mergers in general).

This is just about homeowners versus renters. They are equivalent. If you walk down any residential street, some residents are owners and some are renters. They receive the same product just with a different method. And they do not receive the same tax benefits.

We are subsidizing the ones who have more capital and not subsidizing the ones with less capital. The effect of the subsidy is to increase the annual income of the wealthier families to the detriment of the less wealthy families (in general).

3