Housing Tax and Transfer Programs Decrease Inequality

We examine the relationships between housing subsidies, the mortgage interest and real estate tax deductions, and income inequality and find that housing subsidies to low-income families reduce income inequality while the mortgage interest and real estate tax deductions increase it. On net, the distribution of post-tax, post-transfer income is slightly more equal than it would be in the absence of these three programs.

Reference Information

Author: 

Gregory Acs,
Paul Johnson
Publisher: 
The Urban Institute
Publication Date: 
August 2015