There Are Several Features in the Federal Income Tax That

question 31

Essay

There are several features in the federal income tax that encourage home ownership.List those features and show how they provide subsidies for homeowners.Explain how the price of housing might be affected if all these subsidies were eliminated.Why has the reduction in marginal tax rates in recent years reduced tax expenditures that subsidize home ownership?

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Definitions:

Optic Disc

The region in the eye where nerve fibers from the retina converge to form the optic nerve, leading to a natural blind spot.

Blind Spot

Retinal region where axons forming the optic nerve leave the eye and where blood vessels enter and leave; has no photoreceptors and is thus said to be blind.

Iris

The iris is the colored part of the eye that surrounds the pupil and controls the amount of light entering the eye by adjusting the size of the pupil.

Amacrine Cells

Specialized cells in the retina that connect bipolar cells to ganglion cells and are involved in the integration and processing of visual information.