What is the major tax break for homeowners? Why does the tax benefit increase with income?

ESSAY— 60 points– (ANSWER 2 of 3)

1. Explain Low Income Housing Tax Credits. What are the designed to do? How do they work?

2. Explain the difference between the Gautreaux Program and Moving To Opportunity (MTO). What are the policy implications based on the MTO outcomes? (i.e. What should government do in response to these outcomes, if anything?)

3. What is the major tax break for homeowners? Why does the tax benefit increase with income?