How Federal Tax Expenditures that Support Housing Contribute to Economic Inequality

Abstract

The purpose of this article is to examine how federal income tax laws benefit more affluent owner households but provide no benefits to economically-strapped renter households. This article proposes that the tax savings currently accruing to affluent owners be reduced and that the resulting increase in revenue to the federal government be appropriated to subsidize the rents of low income tenants who are eligible for government rental assistance.