Letters to the Editor
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A case against tax breaks, maybe
Interesting article that brings new issues to the rent vs buy debate. But really, as a case against home ownership, it's a little weak. Owning a home is for many people about stability, comfort and investment. You never have to face a rent increase when you own. You never have to move because your landlord sold out from under you. And you can maintain your own place to a standard that renters can only dream about. It doesn't make you immobile, as houses can be sold should the need arise.
However, tax breaks for homeowners have always been very regressive. They punishes poor people who can't afford to buy (or encourages them to take out ill-advised loans so they too can enjoy the tax benefits). It's also unnecessary...I live in Canada where the only tax benefit to owning your own home is that the capital gains on one residence are exempt...something that only matters when you sell. The mortgage is still entirely paid with after-tax money. Yet owning is still a very attractive option. This theory about labour mobility and economic efficiency just adds one more argument against the government actively encouraging ownership.