Please no written by hand and no image in 2017 the mortgage interest deduction became even more regressive than in the past. Regressive, in this context, means that it benefits the wealthy significantly more than those lower on the income scale. The reason is simple: Mortgage interest is a function of the size of the mortgage. Since the wealthy tend to buy more expensive homes, their mortgages are larger and their tax benefits larger. Does that matter to your opinion of the subsidy?
Please no written by hand and no image in 2017 the mortgage interest deduction became even more regressive than in the past. Regressive, in this context, means that it benefits the wealthy significantly more than those lower on the income scale. The reason is simple: Mortgage interest is a function of the size of the mortgage. Since the wealthy tend to buy more expensive homes, their mortgages are larger and their tax benefits larger. Does that matter to your opinion of the subsidy?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please no written by hand and no image
in 2017 the mortgage interest deduction became even more regressive than in the
past. Regressive, in this context, means that it benefits the wealthy significantly
more than those lower on the income scale. The reason is simple: Mortgage interest
is a function of the size of the mortgage. Since the wealthy tend to buy more
expensive homes, their mortgages are larger and their tax benefits larger. Does that
matter to your opinion of the subsidy?
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VIEWStep 3: The Regressive Nature of the Deduction
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VIEWStep 6: Understand Assessing the Subsidy:
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