Senator Cardin’s Homebuyers Credit More of the Same Terrible Tax Policy

April 4, 2008

It’s pretty ironic that there appears to be such widespread support in the United States Senate for expanding tax preferences for housing (see most recent Cardin press release which will be voted on today), yet such widespread opposition in almost every policy research organization in Washington, whether conservative or liberal.

The Heritage Foundation opposes expanding tax preferences for housing. Howard Gleckman of the Urban-Brookings Tax Policy Center, yesterday wrote a terrific blog post explaining why they are bad tax policy. Dean Baker of the left-of-center Center for Economic and Policy Research opposes them. Of course, the Tax Foundation opposes all tax preferences for housing.

Maybe those of us in our “ivory towers” just don’t understand how tax policy affects housing, while these members of Congress are the true policy experts. In fact, I would like to nominate the entire U.S. Senate for the Nobel Prize in economics for showing the tax policy research community just how tax policy should be designed with regards to housing and for repealing the basic laws of supply and demand. I’d like to also throw in the members of the National Association of Realtors and the National Association of Homebuilders who, out of their genuine altruism, have gone that extra step to teach us and those on Capitol Hill how tax policy should really work.

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