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Rose Briar's avatar

"Of course, if the program were subsidized from general revenue (in order to increase the discounts for buyers), it would represent a transfer from high-earners’ labor income to middle-class housing wealth. "

Sounds like a bit of equalizing of the upper/lower middle class divide you mentioned in a previous post?

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John E's avatar

Why should housing be a way to build wealth? I mean, people use it but it seems like a terrible idea. Housing needs constant investment to maintain and build its value. Increases in value are taxed immediately without liquidation through property taxes in most states. Tax perks for owning it decrease over time and are generally setup so that the wealthiest benefit the most.

It also made a lot more sense in a society where people started working at a company shortly after graduating school (high school or college) and worked there their whole careers. In an environment where you might change jobs regularly, then being bound to location decreases economic potential.

If you are wanting to build wealth, why not simply do a baby bond? Give every child 5k to 10k in treasury bonds (or even better a total market index fund). They can take out half the money when they turn 25 and the rest sometime later.

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