Unmasking the Myth: Feel-Good Tax Policies as Tools of Economic Sabotage
Many people love the idea of tax breaks that help with buying a home or paying for college. Policies like the mortgage-interest deduction, education credits, residential energy credits, and clean vehicle credits sound great because they appear to make big life expenses cheaper. But these “feel-good” rules actually do almost nothing to accomplish their stated goals. They twist people’s choices, pushing them to spend in ways the government picks, instead of what makes sense for individuals. This leads to wasted money and a messier tax system that costs everyone more in the long run. Take the mortgage-interest deduction, for example. It doesn’t really get more people into homes—it just encourages folks who can already afford it to buy bigger houses or take on larger loans. Wealthier families end up getting the biggest perks, while the rest of us foot the bill through lost tax dollars.
Education credits are no better; studies show they don’t boost college attendance or graduation rates at all. Instead, schools just raise tuition to grab the extra cash, leaving students and taxpayers with higher costs and no real gains.
Energy and vehicle credits just incentivize people to buy things that are subject to the credit when a wiser choice would have been to spend the money differently. The smart fix is to scrap these distorting rules and let markets work freely. A simpler tax code without these carve-outs would treat everyone fairly, cut waste, and free up resources for real growth. People could make their own decisions on homes, education, and more, without the government picking winners. In the end, ditching these costly policies would build a stronger, more efficient system that benefits all.