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FEDERAL TAXES AND THE INTERNAL RATE OF RETURN ON OWNER OCCUPIED HOUSING

HOSSEIN ASKARI
National Tax Journal
Vol. 25, No. 1 (March 1972), pp. 101-105
Published by: National Tax Association
Stable URL: http://www.jstor.org/stable/41791783
Page Count: 5
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
FEDERAL TAXES AND THE INTERNAL RATE OF RETURN ON OWNER OCCUPIED HOUSING
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Abstract

In this paper, the internal rate of return on owner occupied housing is calculated for people in digèrent tax brackets and under a range of values of the relevant parameters. The results show that the internal rates vary a great deal for people in various tax brackets. One must conclude, therefore, that if housing is a merit good, the government must change the present tax laws in order to both eliminate this discrepancy in the internal rates and to increase the internal rate of return for people in the lowest income brackets.

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