So a million Jacks should take a pass on buying $400K houses
Let someone else buy them
That will sure make the sellers and builders happy and create more jobs, eh?
Instead of resenting Jack’s willingess to take on more debt because he can pay for it with a couple hundred extra dollars of income every month, ever think that this tax incentive may actually create a few jobs? More than might be created if Jack paid higher taxes instead?
I guess we may soon find out
Yeah, it might, but the purpose of the tax code is to raise money for the government, not to favor one industry at the expense of others.
When Jack buys a $200K instead of a $400K house, he (probably) doesn't bury the money he's saving in a Mason jar in the backyard. He's investing and spending it in ways that create -other- jobs.
Read up on "Bastiat's parable of the glazier" if you want to know how this works, and the flaw in your thinking.
Those other jobs should not be penalized in order to subsidize the jobs in homebuilding. Most of which appear to be going to illegals, anyway.