Economist Peter Orszag, President Obama’s former budget director, is pushing a unique plan to reduce the glut of vacant homes that are weighing down the housing market: Give tax write-offs to investors who buy vacant homes and then rent them out.
For whatever reason, the government, in its infinite wisdom, actually has a tax system that encourages investors to keep vacant homes vacant, unless they’re bought by others, which isn’t happening fast enough right now. Orszag’s proposal would encourage renting out those homes, driving down rental prices and cutting down the number of houses sitting empty.
It makes too much sense. It sounds too easy. So it’s something Washington is probably incapable of understanding. So it probably won’t get done. The pols prefer big huge programs with fancy acronyms and slogans and media hoopla when launched. Tax write-offs? How boring.
But we can dream.
File under: Keep It Simple Confusing Stupid
