摘要：The purpose of this study is to provide exploratory evidence concerning the degree to which geographical cost of living differentials interact with homeownership tax incentives in affecting tax system equity. Incorporating both federal and state homeowner tax subsidies calculated using the 1991 Ernst & Young Tax Model File; the authors provide evidence concerning both horizontal and vertical equity in the system. Descriptive statistics and regression results provide findings which indicate positive and direct relationships between the homeowner tax subsidy and 1) taxpayer disposable income (increased regressivity in the tax system) and 2) taxpayer state of residence median housing values (decreased horizontal inequities between similarly situated homeowners in different states). These findings indicate that elimination of the homeowner tax subsidy accompanied by a direct subsidy would increase equity within the system. Furthermore, the findings suggest that the President’s Advisory Panel on Federal Tax Reform (2005) recommendation for a home credit, with a limit based on average cost of housing within a taxpayer’s area, will result in a more equitable distribution of the homeowner tax subsidy.
