Can we afford things like the home mortgage interest deduction? It costs about $130 B/yr — the wealthiest 20% of Americans capture more than 80% of this subsidy — and less than 4% of it goes to the bottom 60%. (And it inflates home prices.) Then there are deductions for second homes, property taxes ($31 B/yr), exclusion of capital gains taxes on home sales ($50 B/yr), etc. Compare to $48 B/yr, which is the total of all HUD outlays (Dept of Housing and Urban Development). Deductions for purchasing health insurance, retirement savings, savings for higher education, and on and on. Little of this goes to the poor.
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