This is very true. As a result I'm expecting support for the idea from the Libs. They would support anything that would hurt the economy if it would help them return to power. This would do the trick.
The Real Estate "bubble" is built in part on the deductibility of home mortgage interest. It's been the law for a long time and people have made their budget calculations based on the tax subsidy. You can remove it. You can argue that it would yield a tax system that is more fair. But if you do be prepared for the recession that will follow as real estate values fall, loan defaults increase and ultimately banks begin to fail. The last time this happened the American Tax Payer came to the rescue.
I don't think it's worth it. Stick to the system we've got. It works. Real Estate investments pulled us out of the most recent recession and things are rolling along pretty good right now. I wouldn't mess with it.
I agree with you--the RE industry and related industries will collapse and trigger a recession.
Agree. And we've seen what happens to societies that do not emphasize home ownership and property rights. Since no one owns anything, values get trashed; the Tragedy of the Commons.