Taxes And The User Cost Of Capital For Owner Occupied Housing PDF Download
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Author | : Patric H. Hendershott |
Publisher | : |
Total Pages | : 42 |
Release | : 1982 |
Genre | : Capital levy |
ISBN | : |
Download Taxes and the User Cost of Capital for Owner-occupied Housing Book in PDF, ePub and Kindle
Owner-occupied housing is said to be favored in the tax code because mortgage interest and property taxes can be deducted in the computation of one's income tax base in spite of the fact that the returns from owner- occupied housing = not taxed. The special tax treatment reduces the user cost of capital for owner-occupied homing. The issue treated in this paper is the measurement of the tax rate to be employed in the user cost calculations. It is argued that different tax rates am appropriate for the tenure choice and quantity-demanded decisions, and that these values depend on the detailed tax position of the household and the method of finance. Average 1977 tax rates for households in different income ranges are calculated using the NBER TAXSIM microeconomic data file on individual tax returns.
Author | : Michael Ball |
Publisher | : |
Total Pages | : 60 |
Release | : 1990 |
Genre | : Home ownership |
ISBN | : |
Download Taxation and the Owner Occupied Housing Market Book in PDF, ePub and Kindle
Author | : Denise DiPasquale |
Publisher | : |
Total Pages | : 58 |
Release | : 1989 |
Genre | : Housing |
ISBN | : |
Download The Cost of Capital, Tax Reform and the Future of the Rental Housing Market Book in PDF, ePub and Kindle
Author | : Frank De Leeuw |
Publisher | : |
Total Pages | : 32 |
Release | : 1981 |
Genre | : Housing |
ISBN | : |
Download The Impact of the Federal Income Tax on Investment in Housing Book in PDF, ePub and Kindle
Author | : James M. Poterba |
Publisher | : |
Total Pages | : 64 |
Release | : 2008 |
Genre | : Housing |
ISBN | : |
Download Income Tax Provisions Affecting Owner-occupied Housing Book in PDF, ePub and Kindle
The mortgage interest deduction, the property tax deduction, the unique treatment of capital gains on owner-occupied homes, and the absence of taxation on imputed rent from owner-occupied homes all influence the effective cost of housing services. They also affect federal income tax revenues and the distribution of income tax liabilities. We draw on household-level data from the 2004 Survey of Consumer Finances to analyze how several potential reforms would affect incentives for housing consumption as well as the distribution of income tax burdens. Our analysis recognizes that changing the mortgage interest deduction would induce changes in household financial behavior. We estimate that repealing the mortgage interest deduction in 2003 would have raised income tax revenues by $72.4 billion in the absence of any portfolio adjustments, but by only $61.9 billion if homeowners responded by drawing down a limited set of financial assets to partially replace their mortgage debt. The revenue effects of changing the property tax deduction similarly depend on how state and local governments alter their mix of revenue instruments in response to federal tax reform. Our results underscore the importance of recognizing behavioral responses when calculating the revenue costs of income tax provisions relating to owner-occupied housing.
Author | : Krister Andersson |
Publisher | : International Monetary Fund |
Total Pages | : 38 |
Release | : 1990-10-01 |
Genre | : Business & Economics |
ISBN | : 1451948808 |
Download Investment in Housing in the United States Book in PDF, ePub and Kindle
It is well known that the preferential tax treatment of housing induces an inefficient allocation of saving and investment. This paper analyzes, in a portfolio framework, how eliminating the deductibility of mortgage interest payments for federal income tax purposes might affect investment in housing. Expected rate of return and risk is estimated for three assets, bonds, housing, and stocks. The possibility that assets are imperfect substitutes is explicitly recognized in one section of the paper. The model suggests that the share of housing is likely to decrease by 4 to 9 percentage points if mortgage interest payments are not deductible. This may call for careful phasing of the change in policy.
Author | : Bernd Gutting |
Publisher | : Springer Science & Business Media |
Total Pages | : 146 |
Release | : 2012-12-06 |
Genre | : Business & Economics |
ISBN | : 3642456308 |
Download Taxation, Housing Markets, and the Markets for Building Land Book in PDF, ePub and Kindle
Almost everywhere in the world housing policies play an important role in government programs. Especially in the industrialized Western economies housing policy issues are triggered mainly by two developments: growing population density and increasing environmental pollution enforce a systematic planning of regional and urban development; all social groups want to participate in the increasing welfare of the domestic economies; until today housing policy is considered an appropriate tool for redistribution and social policy. Taxation serves as an important instrument for the realization of the political objectives mentioned above. Surprisingly, there exists wide-spread consent (even on the academic side) on the effectivity of this instrument. However, strictly speaking this consent concerns only the short run. Long-term effects are usually ignored. Therefore, there is always the inherent risk in these policies that (supposed) market inefficiencies will not be cured, but merely carried forward, and possibly amplified. Moreover, it is characteristic for the political discussion that there is no consistent notion of what efficient housing and land markets ought to look like. Generally accepted for example, is the position that land speculation should be fought whereever possible. Hardly anyone asks the question whether the holding of building land will be beneficial to the economy as a whole, and not only to the speculant.
Author | : Dale Weldeau Jorgenson |
Publisher | : Brookings Institution Press |
Total Pages | : 460 |
Release | : 1993 |
Genre | : Business & Economics |
ISBN | : |
Download Tax Reform and the Cost of Capital Book in PDF, ePub and Kindle
The tax reform movement that swept the U.S., Great Britain, and most other industrialized nations during the last decade has focused attention on international comparisons of the cost of capital. More recently, international comparability has become a critical issue of tax harmonization. This is a vital concern in the European Community, as well as between Canada and the United States. This volume provides international comparisons of the cost of different types of capital for nine major industrialized countries -- Australia, Canada, France, Germany, Italy, Japan, Sweden, the United Kingdom, and the United States -- for the period 1980-1990. In the early 1980s the introduction of tax incentives for saving and investment gradually shifted the tax base from income toward consumption. By 1990 most of these special tax provisions had been reduced or repealed in order to lower tax rates and equalize the tax treatment of different forms of capital income. Income was firmly reestablished as the most appropriate basis for taxation. Separate chapters for each of the nine countries, written by leading experts in public economics, provide detailed accounts of tax policy changes over the decade. Each chapter contains a quantitative description of these tax policies and summarizes this information in the form of effective tax rates. The book thus serves as an indispensable reference for comparing capital income taxation in industrialized countries during a period of rapid policy change.
Author | : Patric H. Hendershott |
Publisher | : |
Total Pages | : 32 |
Release | : 1982 |
Genre | : Fiscal policy |
ISBN | : |
Download Government Policies and the Allocation of Capital Between Residential and Industrial Uses Book in PDF, ePub and Kindle
This paper contains three parts: a discussion of the tax advantages of household capital (owner-occupied housing and consumer durables) relative to business capital (structures and producers durables) ,an analysis of alternative mechanisms for reducing these advantages (including the use of the mechanisms since 1965) ,and a brief enumeration of various attempts to lower the residential mortgage rate relative to other debt yields that have been employed during the past two decades or are currently being advocated.
Author | : Patric H. Hendershott |
Publisher | : |
Total Pages | : 58 |
Release | : 1981 |
Genre | : Housing |
ISBN | : |
Download The Impacts on Capital Allocation of Some Aspects of the Economic Recovery Tax Act of 1981 Book in PDF, ePub and Kindle
This paper develops and employs a five-asset, four-household and single-business sector simulation model to measure the long-run impacts of the major provisions of the Economic Recovery Tax Act of 1981 on the allocation of a fixed capital stock among owner-occupied housing, rental housing, and nonresidential capital. The specific provisions analyzed are the increases in tax depreciation for nonresidential capital and rental housing and the reduction in the maximum tax rate on unearned income. Our analysis suggests a 6 percent increase in nonresidential capital, an 11 percent decline in owner-occupied housing and little change in rental housing (the increase in the number of renters -- the homeownership rate declines by 1 1/2 percentage points -- offsets a decline in the quantity of rental services demanded per renter). In the absence of an increase in aggregate saving, real pretax interest rates rise by nearly two percentage points. Corporate profit taxes decline by 60 percent, and after-tax earnings rise by 25 percent. As a result of the Act, the net (of depreciation) user costs for the three types of capital will almost be equalized.