Social problems in the Americas
Most of the social problems are driven by the lack of access to stable affordable housing. This leads to a majority of the poor households investing in housing expenses with at least half their wages. Without exceptions, the housing affordability crisis in America is felt by all counties in the country. From 2000, rent across the country has increased, increasing in turn the number of desperately needing families with affordable housing (Capps, 2015). Affordable housing in general shouldn’t be more than 30% of a household’s income. In the years 2013, out of 100 low-income families, only 18 were able to afford a home. This is down from 25% from previous decades. Similarly, 1 out of four tenants already pays 50% or even more of their income on their mortgage and America’s subsidized housing which is affordable is fewer by 5.3 million (Kotin, 2013).
Many social problems in the Americas, are founded by a lack of stable affordable housing. Eviction crisis in America is linked to housing security, as evictions are unintended movements by landlords. Most expulsions result from the fact that they have been unable to pay rents, but they can also be caused by landlords who take boarders, damage properties, cause trouble, or break the law. However, in the majority of American towns and cities, landlords can evict tenants with no faults, and even tenants who have never missed paying their rent or violated their lease agreement can be evicted. (Eviction Lab, 2018).
These evictions are a significant cause of people being homeless. All families and neighborhoods are uprooted and destabilized. In general, families lose their belongings, which can be recovered only after a fee has been paid. In addition, legal displacements are followed by a judicial record that ensures that the family does not move in decent, secure homes as many landlords are screening for evictions. Many evictions end in work cuts and mental wellbeing adverse consequences (Eviction Laboratory 2018). In addition, families with insecurity facing housing have to choose between renting and taking into account basic needs, such as foodstuffs or transportation.
The Federal government is the one responsible for important housing policies in the United States providing housing consumers with subsidies. Local governments determine other housing policies – the regulation of housing, the provision of service, and occupancy. The Internal Revenue Service (IRS) and the Department for Housing and Urban Development (HUD), provide national subsidies to selected home consumers and producers. The IRS policies are significantly more important in terms of quantity and have a major welfare impact.
The federal housing policies provide subsidies around a third of households with low incomes. They develop technologies from government-owned and administered housing providers to those providing additional cash assistance to eligible landlords. The Public Home Program to support local governments in construction was established in 1937 Housing for the briefly homeless and building jobs after the Great Depression for the poor migrant workers.
The Internal Revenue Service directs two housing subsidy programs: tax expenses on homeowners, as set out in the personal income tax code, and tax expenses on the housing builders, under the low-income tax credit program specified in the 1986 tax reform legislation. The Internal Revenue Service directs two housing subsidy plans. This is a limited initiative, arising with the 1986 Tax Reform Act. Since personal income tax was laid down in 1915, the former program is large, in its present form. The benefits for homeowners are in reality among the most favorable in the developing world under such tax policies. (But the US certainly does not have a unique form of these subsidies.
There are policies that have been put in place for housing. For instance when you consider a person who opts for occupied housing investment and equivalent investment in other common asset stocks. There are three tax benefits for investment in owner-occupied housing. First, the return on the expenditure on the possession of housing is untaxed in the Internal Revenue Code, which takes the form of housing facilities purchased each year. On the other side, the common stock distributions are registered as profits and taxable during the accumulated year. In fact, capital profits from the acquisition in homes will be permanently delayed. In addition, those over 55 years of age are entitled to a broad capital gains exclusion. Capital gains, by contrast, in the year they are made on the stock market are taxed.
Thirdly, the federal income tax liability dedication deductions can be classified under the personal income tax as deductions for certain costs associated with home owning, notably property taxes and mortgage interest payments. All such charges in interest are excluded in the Internal Tax Code as financial expenditures. This preferential classification applies in compliance with the rules of all 50 States to federal income tax. The net effect of those US tax law provisions is to reduce housing prices by a substantial amount in relation to rentals. In addition, the relative prices of homeownership vary according to the level of income and inflation in accordance with these policies. These policies are important as they strive to provide affordable houses to citizens.