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Every year, the federal government redistributes hundreds of billions of tax dollars to various housing programs, and provides billions in housing subsidies through various tax breaks. One of the more wasteful of such subsidies is the low-income housing tax credit (LIHTC), a form of corporate welfare created by the Tax Reform Act of 1986. The Consolidated Appropriations Act of 2018 expands the LIHTC, thus ensuring that large developers and investors will continue to benefit at the expense of all other taxpayers, including those the credit is intended to help. Policymakers should limit the federal government’s involvement in the U.S. housing market, including ending the inefficient and poorly targeted LIHTC.

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