Wednesday, October 11, 2017

TKC EXCLUSIVE!!! KANSAS CITY HIGH-INCOME HOUSEHOLDS COLLECT MUCH MORE ASSISTANCE THAN SECTION 8!!!



As our community continues to consider increasing wealth disparity in Kansas City and beyond, an important fact regarding taxpayer-funded assistance comes to light with the help of our reporting partners.

To wit . . .

CHECK THIS FACT CHECK ON HIGH-INCOME KANSAS CITY HOUSEHOLDS ACQUIRING FAR MORE ASSISTANCE THAN SECTION 8 RESIDENTS!!!

As always, our blog community champions ALTERNATIVE info that challenges assumptions and offers insight into how systems work in so many ways that contradict popular conceptions.

Accordingly, check this report:

MID vs. Section 8: Kansas City high-income households receive 84% more housing assistance than low-income households

With the tax reform debate underway, Apartment List took a closer look at the popular mortgage interest deduction (MID) and compared federal expenditure on the MID to spending on Section 8 rental assistance programs.

In a new report released today, we found that the MID cost the federal government $71.0 billion in 2015, more than double the $29.9 billion funding for Section 8. 

Additionally, the MID is a highly regressive benefit, with most of the expenditure going to high-income households. Only 11 percent of low-income households receive assistance with their housing costs, and spending per household is nearly four times higher for high-income households compared to low-income.



Highlights:

- Nationwide, MID expenditure is more than double the funding for Section 8, and 85% of MID benefits go to high-income households; spending per household is just $416 for the low-income group, compared to $1,549 for high-income households

- Overall, households in Kansas City receive average federal housing assistance of $629 through the MID and Section 8, compared to the national average of $676

- Spending per household in Kansas City is just $379 for low-income households, compared to $1,374 for high-income households

Read the full report here!!! 
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Developing . . .

19 Comments:

The Lamest Generation said...

Looks to me like EVERYONE has their hand out.

Rich and poor alike.

It makes the people who work for a living look like suckers. I guess that's okay because there's fewer and fewer of them every day.

Anonymous said...

More incentive for the lazy bastards to get a job and buy a house. But that would include having to work so that ain’t happening, besides, that’s a small gesture compared to the amount of taxes we pay every year

Anonymous said...

This has been well known for a long time. But the article is somewhat misleading. The people who are getting screwed are not Section 8s, but rather renters who work for a living. Working renters tend to be poorer than people who own homes, but there is no deduction available to them based on the rent they pay. In effect, the poorer renters are subsidizing the wealthier owners. Unfortunately, no sacred cow is more sacred than the mortgage interest deduction, so don't expect anything to change.

Anonymous said...

^^ Up ur big floppy pimpley ass , sir.

Anonymous said...

^8:10^ **

Anonymous said...

Bantu cognition here.
theft vs. charity
steal more from the makers and give it to the takers
is "obviously" the virtuous thing to do.

Anonymous said...

Right

Anonymous said...

The difference, by practice, is that Section 8 assistance is money paid out of the government's tax coffers (i.e. taxpayers money, the MID is the homeowner's own funds that never have to be paid to the government as tax. One should be very careful about how the conversation is framed, confusing the two methods is a de facto acceptance that ALL private income is the governments, and they just allow to keep what they see fit.

Anonymous said...

The mortgage deduction primarily goes to those with high dollar mortgages, since most middle income folks find it doesn't pay to itemize. The standard deduction for married couples is $12,700, so you'd have to have more than that in itemized deductions before the mortgage deduction would pay. Additionally, the mortgage deduction gives some people an unwise incentive not to pay off their mortgages, since they think they're getting a deal when, in fact, for every dollar they're able to deduct, they get maybe 34 cents back. (If they think that's a deal, I'll give anyone who sends me $100 $35. That's an even better deal!)

As usual, we're subsidizing the wealthy.

seanot said...

What the government doesn't steal is aid. The only way that makes sense is if you agree that everything you earn belongs to the government in the first place.

Anonymous said...

This article is comparing apples to oranges. People who buy houses support the economy, construction jobs, etc. and use their purchasing power to employ low paying retail positions.

Anonymous said...

Most people in KC get little benefit from the deduction. A $200,000 mortgage at 3.5% only costs $7,000 in interest. Add in their deduction for taxes, contributions etc they might itemize deductions up to $16,000. But the tax savings is only the amount over the standard deduction of $12,600 so $3400 X 25% or $850. Most taxpayers in that category are paying $20,000 in federal and state tax. So in the liberal's eyes they are somehow freeloaders while the section 8 people pay zero tax and get a $5000 refund because they don't have a baby daddy around.

Anonymous said...

I like how keeping my own money via mortgage interest deduction COSTS the government money...like I'm keeping more of their money than I should!

PAYING out money in Section 8 subsidies actually COSTS the government (the US Taxpayers) money!

Anonymous said...

Not paying higher taxes is collecting income?

Anonymous said...

10:07
10:30

+1!!!!

Anonymous said...

10:31: It doesn't really cost the government so much as it costs those of us who don't qualify for the deduction and subsidize you, but it's the law, and I don't blame you one bit for taking advantage of it.

BTW, the tax proposal being considered raises the standard deduction to $24K for a married couple, and Realtors are having a hissyfit because a lot more people won't be able to use the mortgage deduction. Let's see if their lobby is powerful enough to get the plan revised!

Anonymous said...

Mortgage interest deduction drives the housing market, which a large and crucial part of our economy. Section 8 is a parasite program for the lazy breeders to take advantage of while infiltrating good neighborhoods. Making your neighborhood more ghetto fabulous was an important goal of the Obama administration.

Anonymous said...

5:10, no, the mortgage interest deduction does not incent people to buy houses, it incents them to buy bigger and more expensive houses. The deduction for primary residences is here to stay, unfortunately, but we might be able to get rid of the deduction for second homes, which makes no sense at all.

Anonymous said...

Tis argument sounds great until you grasp that the Fed totally controls mortgage interest rates so no matter what you think you are getting Uncle Sam is getting what he wants by playing the numbers. Where does that happen with welfare?