Wednesday, April 4, 2018

This Failed Tax Subsidy Should Have Been Ditched. Instead, Congress Expanded It.

It's a renewal of a failed tax credit program that purports to subsidize low-income renters while mostly benefitting wealthy investors.

The Low-Income Housing Tax Credit is one of those federal programs that sounds on its face like a productive way to help those who need it most.

"Before the omnibus expansion, $8 billion in tax credits were issued each year. That number will rise significantly as the new federal spending bill expands the credit by $2.8 billion over the next ten years."

Some of the largest low-income housing developers exploit the program by inflating construction costs to maximize their subsidy.

Spending billions a year through complex tax schemes, on the other hand, hasn't alleviated the need for low-income housing.

Expanding a broken system of tax credits to benefit narrow business interests signals that Congress intends to continue the same old approach of feeding the swamp while neglecting communities in need.

Low-income housing tax credits clearly aren't working, and it's time to change course.

https://www.dailysignal.com/2018/04/04/failed-tax-subsidy-ditched-instead-congress-expanded/ 

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