Welcome!




Expand Your Education with These Courses from
Time Management: Skills for Sales Success: Part Two.
Business Creation - Prospecting: Skills for Sales Success: Part Three.
Negotiating Skills: Skills for Sales Success: Part Six.
Bundle 1: CIPS Core Course (US Version).
Bundle 3: CIPS Institute (US Version).

Research Links Mortgage Interest Deduction with Economic Opportunity

Have a comment on this article? Share on Facebook!

The mortgage interest deduction (MID) is linked positively with intergenerational mobility – a measure of economic opportunity – according to new academic research from economists at Harvard and Berkeley. This paper comes on the heels of separate research showing that trading the MID for lower individual income tax rates results in lower economic growth.

Using matched tax panel data, the team of economists examined the impact certain tax policies had on differences between the income percentile of children (born in 1980 or 1981 and now adults in the labor market) and the income percentile of their parents when those parents were young workers in the labor force. Differences in income rankings between parents and now adult children are indicative of intergenerational mobility. In contrast, high correlation between parents’ rankings and adult children’s rankings suggest low mobility and less dynamism and economic opportunity.

The tax policies examined include a measure of progressivity of tax expenditures, as well as specific policies including the MID, the state income tax deduction, and state-level earned income tax credits.

In explaining why the MID would be linked to economic mobility the academics note:

“These deductions may impact economic opportunity by providing opportunities for credit-constrained middle and low income families to become homeowners.”

Continue Reading 1 2 3

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.




Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com

Our Latest News >>