Targeted taxes will spur economic growth
A recent study by the R Street Institute suggests this tax preference doesn’t benefit the broad society. The data indicate this policy doesn’t generally incent home ownership, which was the original intent. Instead, it has caused an 18 percent surge in home size in the most affluent areas.
Homeowners with household incomes greater than $100,000 were between three to four times more likely to claim income–tax deductions than those earning less than $100,000 annually.
The average tax break for those earning over $100,000 was more than twice those earning less than $100,000, according to a study by Andrew Hanson, Ike Brannon, and Zachary Hawley in an upcoming issue of National Affairs, a public-policy quarterly.
