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?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter15: The Distribution Of Income And Poverty

Section: Chapter Questions

Problem 2QP

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