Shades of the American Dream

50 Pages Posted: 13 Jul 2014  

Dorothy A. Brown

Emory University School of Law

Date Written: 2010

Abstract

Federal tax policies such as the mortgage interest deduction do not generally encourage anyone to become a homeowner, yet they do increase the cost of housing. Low-income homeowners regardless of race are least likely to be able to take advantage of the mortgage interest deduction. They pay for a benefit that they cannot receive. Middle- and upper-income black homeowners are less likely than middle- and upper-income white homeowners to benefit from federal tax laws supporting homeownership in different ways. The appreciation of most middle- and upper-income black homes is significantly less than the appreciation of middle- and upper-income white homes. As a result, those black homeowners will not benefit as much as white homeowners from the tax provisions that exclude from income gain on the sale of their homes. This Article suggests three solutions which, if enacted, would cause the tax benefits to be more equitably distributed and no longer concentrated in the hands of higher income, white taxpayers.

Suggested Citation

Brown, Dorothy A., Shades of the American Dream (2010). Washington University Law Review, Vol. 87, No. 329, 2009; Emory Legal Studies Research Paper. Available at SSRN: https://ssrn.com/abstract=2465026

Dorothy Andrea Brown (Contact Author)

Emory University School of Law ( email )

1301 Clifton Road
Atlanta, GA 30322
United States
404-712-8218 (Phone)
404-727-6820 (Fax)

HOME PAGE: http://www.law.emory.edu/faculty/faculty-profiles/dorothy-a-brown.html

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