Feature Article: “Real estate is a long-term, risky and labor-intensive investment compared with stocks and bonds. Without tax incentives, real estate can’t compete with other investments for essential capital.”
The vast majority of people don’t understand the reality of this statement. Concurrently, there are, unfortunately, quite a few politicians who apparently don’t understand the reality of this statement.
As the attached article points out, the debacle of the 1986 Tax Reform Act precipitated the collapse of the Savings & Loan industry. This is not “ancient” history. Our political leaders in Washington would do well to remember what occurred in the late 1980’s, early 1990’s as a result of their legislation. They really should remember, as many of them were in congress at the time and voted in favor of this 1986 Tax Reform.
As Winston Churchill wrote: “Those that fail to learn from history are doomed to repeat it”. We certainly hope that the required majority of our politicians in Washington do indeed “learn from history”.
