Chapter

The Role of Housing Tax Provisions

Thomas Hemmelgarn, Gaetan Nicodeme and Ernesto Zangari

in Taxation and the Financial Crisis

Published in print February 2012 | ISBN: 9780199698165
Published online May 2012 | e-ISBN: 9780191738630 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199698165.003.0003

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The 2008 financial crisis has been the worst economic crisis since the Great Depression of 1929. It has been characterized by a housing bubble in a context of rapid credit expansion, high risk-taking, and exacerbated financial leverage, ending in deleveraging and a credit crunch when the bubble burst. This chapter discusses the interactions between housing tax provisions and the financial crisis. In particular, it reviews the existing evidence on the links between capital gains taxation of houses, interest mortgage deductibility, and characteristics of the crisis.

Keywords: financial crisis; tax policy; housing; interest deductibility; capital gains

Chapter.  11237 words.  Illustrated.

Subjects: Financial Markets

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