Crazy Ideas to Improve the World

Social Security and Housing

What about offering Social Security assets as collateral for home purchase? That could be a big boost for lower-income families that need a good savings vehicle and would allow them to take advantage of the various tax benefits of homeownership, including the $250,000 renewable exclusion. Homeowners can also build sweat-equity through their home improvement projects.

At the same time, I'd like to see more progressivism related to the mortgage tax deduction: perhaps a tax credit at an even 25% of mortgage interest rather than deductibility at income rates which favors the rich, a reasonable cap on mortgage interest deductibility as an effective luxury tax on mega-mansions, and similar tax credits for rent payments. We live in an increasingly mobile society, which I believe is a good thing for our economy, but transaction costs on real estate, while gradually falling, do not make it practical for a mobile worker to be a homeowner.

posted by Chris @ 2:03 AM