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Tax Credits for Low-Income Housing Debate

The topic is Issue of Tax Credits for Low-Income Housing.

Select a contemporary issue that has polarizing viewpoints, such as environmental policy, taxation and income redistribution, same-sex marriage, worker's rights, immigration, and so forth.

Write 1,050- to 1,400-words, describing how politically powerful factions compete in policy decisions and debate issues. You could examine environmentalists versus big business or alternate energy sources versus more oil drilling.

Provide your assessment of whether or not the opposition you described has contributed to a healthy debate. Consider the following questions:

Has the opposition moved toward consensus or polarization in public opinion?

Are either or both leaving the national interest aside in favor of their own?

What is your conclusion about the best answer to the issue?

Evaluate theoretical perspectives, such as pluralism, state autonomy, or elitism, and explain factionalism in support of and opposition to your issue.

Select a contemporary issue that has polarizing viewpoints, such as environmental policy, taxation and income redistribution, same-sex marriage, worker's rights, immigration, and so forth.

Format your action plan and presentation according to APA standards

Solution Preview

Dear Student,

Hello and thank you for using Brainmass. The solution below fits into the requirements of your problem and should get you started. Since this is a debate, positions must be taken even if you have to present the issue therefore the solution below takes this form. If you feel the need to expand on the information provided, I advise using the references listed. Good luck!

Sincerely,
OTA 105878/Xenia Jones
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The Tax Credits for Low-Income Housing Debate

Low Income Housing Tax Credit also known as LIHTC is the popular dollar for dollar tax credit program aimed at providing affordable housing for low income Americans. It is a direct consequence of the Tax Reform Act of 1986 (TRA86) whereby the utilization of private equity allows for incentives and development and the empowerment of low-income families through property ownership. Families & companies utilising the LIHTC gives 10 years of tax credits. Since 1986, affordable housing via LIHTC has sprung up making up to nearly 90% of all affordable housing developments in the US today (especially ones geared for rent). By utilizing section 42 (the LIHTC's Internal Revenue Code section that pertains to applicability) a dollar for dollar reduction is in effect on the taxpayer's federal income tax making it more effective than taxation reductions. Development corporations have utilised LIHTC to develop housing geared for rental to low-income families, since 1986 almost 2 million homes has been developed via said program. Additionally, legislation (i.e. a 2006 TRA86 amendment) funneled increased subsidy to the program amounting to billions of dollars plus the $3.85 billion from the Federal Treasury. LIHTC is also buoyed by subsidies from related government agencies wherein qualifying families receive grants and loans at below-market rates and according to the US Department of Housing & urban Development (HUD), this accounts for about a third of all developments in terms of capital subsidies. ...

Solution Summary

The solution is an APA-format essay-guide of 1,044 words that tackles how factions influenced and were displayed in the debate on the use of Tax Credits for Low-Income Housing. An analysis of power, positions, and interests of the involved are included in the narrative. A word version is attached for easy printing. References are listed for the purpose of expansion.

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