The Economics of Mortgage Revenue Bonds: A Still Small Voice
- 38 Downloads
The MRB tax expenditure has shown remarkable resilience over time. MRBs survived even during the years of Gramm-Rudman-Hollings and the fight for deficit reduction. This despite the solid evidence of the high cost of this tax-code distortion in relation to the minimal benefits accruing to home buyers (see chapter 3). The reason for their continued survival has little to do with objective benefit-cost analysis. MRBs survive in the way that many other narrowly defined but poorly targeted preferences do: special interest groups like them, so the legislators they influence like them as well.