Greg Mankiw's Blog: The Meltzer Plan

Greg Mankiw's Blog: The Meltzer Plan

To address the housing problem, Congress and the administration should take actions that increase the current demand for housing. For a limited time, say up to the end of 2009, allow buyers to use the value of their down-payment (or some part of it) as a tax deduction. Or, reduce the tax rate for qualified buyers who purchase a house between now and January 2010. Or do both. Give the benefit to all home buyers, including those buying a second or third house.

American dream – how to make people buy two or three houses all at once. It is an attractive idea, why not, it is a good investments.