Probably because in their twisted logic a cap gain turns into income for the Modified Adjusted Gross Income. Welcome to IRMA. Another penalty for being successful.
Another penalty for being successful
Every smack in the face government tax fee or giveaway to somebody else seems to have a redistribution scheme alone as basis.
The CDBG goes to communities ( exactly communities) under the auspices of development block grants and picks low (to moderate( good luck)) properties to fix up based on need.
So if you kept up your property you get nothing all else being equal but if you sat on the porch drinking for years while the house fell down then you get the governments free fix up rebuild full of all kinds of federal contracting requirements that are yet another self perpetuated added freebee gifting discrimination tool scheme.
The entire fed is a pyramid of bureaucratic promulgation grown plum out of control.
The thing needs to be clipped financially, defund the fed. 38 trillion$ in debt, damn.
Rant on.