Simple Solution: Tax the associated financial companies
Reader comment on: Chicago Explores Eminent Domain Mortgage Seizure
Submitted by Lyle (United States), Jul 26, 2012 21:51
In these schemes there is a financial company that hopes at least to make a large commission, as well as in many case a large profit. A 100% tax on these items to the financial companies would kill it immediately. Call it a Pigovian tax if you like. (If you want less of something tax it, so if you want less of the mortgage stuff tax the folks that make money off it) Note that unless the exemption for loan forgiveness on underwater mortgages is extended the folks owning the home get to pay income tax on the forgiven balances as well.
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