Home owners were the beneficiary of decades of government regulation including (1) subsidized loans, (2) tax deductions, and (3) zoning restrictions. Consequently, the house has been the best investment for the average family. Renters have had to carry the burden of paying the full income tax rate while paying higher rents because of a supply-restricted market.
Now renters are being asked to bail-out the mortgage market. We demand justice for renters! As one third of the population our rights and interests have been ignored by the government. We want parity with home owners. Here are our proposals:
Tax Parity
Renters should be given an equivalent deduction to match the average interest deduction of the home owner. We appreciate that home owners want to keep their hard-earned income to pursue their dreams. We’d like to keep our income to pay for our dreams even when they don’t include owning a home.
Zoning Relief
Enact a federal moratorium on single-family zoning. Artificial restrictions on multi-family dwellings have hampered the construction of rental properties. Renters have had to pay high prices for apartments in supply-restricted markets.
In addition, this moratorium will help home owners who can’t meet their mortgage payments by allowing them to take in boarders or convert their homes to two-family housing. Generations ago such means were often used to get through a crisis.
Multi-family dwellings are a more efficient use of land. However, let’s not subsidize or penalize any choice. Let the individual decide on their life priorities given their earning potential.
No Bail-Outs
Government should not bail-out individuals who fail to invest prudently. Neither corporations nor home owners should expect a government bail-out. Mortgages are inherently risky. Losses from imprudent investments should not be born by renters or other innocent bystanders. If mortgage holders want insurance they must demand appropriate terms in the mortgage contract.
Under no circumstances should renters or responsible home owners have to bail-out investors or delinquent home owners.
Individual Rights: Rights are for Everyone
Renters are a minority whose rights have been trampled by the majority. Our Founding Fathers feared unlimited democracy as it leads to the tyranny of the majority. They created a system of checks-and-balances and a bill or rights to guard against this problem. We believe our government has failed. We demand justice!! We demand our rights!!
