The federal government helps Americans build personal wealth in a variety of ways, most notably with tax breaks related to homeownership and retirement savings. However, most of this assistance goes to people who are already doing well. In 2003, the federal government spent $110.5 billion in homeownership incentives, the bulk of which accrue to better-off families. For example, nearly 90 percent of the mortgage interest deduction benefit accrues to tax filers with adjusted gross incomes over $50,000. Homeowners are even able to deduct mortgage interest on second residences.
The Executive Summary of the full report, Crossing Divides, examining four cases of policymaking during the 1990s -- the Earned Income Tax Credit, Individual Development Accounts, the Children's Health Insurance Plan, and Empowerment Zones -- suggests some emerging common ground among liberal and conservative policymakers.
Examining four cases of policymaking during the 1990s -- the Earned Income Tax Credit, Individual Development Accounts, the Children's Health Insurance Plan, and Empowerment Zones -- suggests some emerging common ground among liberal and conservative policymakers.