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Originally Posted by Orpheus
aceventura, I can't agree because the marginal cost of consuming one item, for example, an apple, is much costlier for the poor than the rich, as a percentage of their income.
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I think the fundamental problem is people will consume more or what they would not normally consume if the costs are hidden or subsidized.
Our current tax code hinders poor people accumulating assets and building financial security. For example the mortgage interest deduction, with that deduction my after tax cost on my home is less than what renters pay in many cases. Renters have a harder time saving to buy a home because housing prices are inflated because of this form of a tax subsidy. the federal government should not be in the business of trying to manipulate the real costs of home ownership.