How Taxes Affect Economic Behavior

By Henry J. Aaron; Joseph A. Pechman | Go to book overview

FRANK DE LEEUW and LARRY OZANNE


Housing

A SERIES of past studies have established a strong case that the federal income tax favors investment in housing over investment in many other financial and real assets.1. In the case of owner-occupied housing, the reason is that the housing services an owner provides for himself are not counted as income, although certain of the expenses of providing these services--namely, property tax payments and mortgage interest payments--are deductible in calculating taxable income. Capital gains on owner-occupied housing, furthermore, largely escape taxation. In the case of rental housing, the main factors are depreciation allowances for tax purposes far in excess of economic depreciation, rapid write-off of con-

____________________
The authors are grateful for financial support from the Office of Tax Analysis and for many helpful comments by readers too numerous to mention. A version of this study appeared in the Survey of Current Business, vol. 59 ( December 1979), pp. 50-61.
1.
Henry J. Aaron, Shelter and Subsidies: Who Benefits from Federal Housing Policies? ( Brookings Institution, 1972), pp. 53-73; George S. Tolley and Douglas B. Diamond , "Homeownership, Rental Housing, and Tax Incentives," in Federal Tax Policy and Urban Development, Hearings before the Subcommittee on the City of the House Banking, Finance, and Urban Affairs Committee ( Government Printing Office, 1977), pp. 114-95; Richard Goode, The Individual Income Tax ( Brookings Institution, 1964), pp. 120-29; David Laidler, "Income Tax Incentives for Owner- Occupied Housing," in Arnold C. Harberger and Martin J. Bailey, eds., The Taxation of Income from Capital ( Brookings Institution, 1969); Harvey S. Rosen, "Housing Decisions and the U.S. Income Tax: An Econometric Analysis," Journal of Public Economics, vol. 11 ( February 1979), pp. 1-23; Emil Sunley, "Tax Advantages of Homeownership Versus Renting: A Cause of Suburban Migration?" in National Tax Association-Tax Institute of America, Proceedings of the Sixty-third Annual Conference on Taxation ( Columbus, Ohio: NTA-TIA, 1971), pp. 377-92; and Paul Taubman and Robert Rasche, "The Income Tax and Real Estate Investment," in Tax Incentives ( Lexington Books, 1971), pp. 113-42.

-283-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
How Taxes Affect Economic Behavior
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 456

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.