this post was submitted on 02 Aug 2023
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The feds could remove the tax credits on home ownership for houses over a certain price.
There would be a strong incentive to build less expensive housing if mortgage interest wasn't tax deductible and sellers had to pay capital gains on the full ~~sale price~~ profit of the sale.
Edit: I worded that badly. Sellers should pay capital gains taxes on the profit of the sale, not the sale price. Thanks to u/TemporaryBoyfriend for pointing that out.
Then it's just a flat rate tax, not a tax on the 'gain' of the 'capital'.
You're right, I phrased that wrong. It should be capital gains on the profit.