[Verse 1]
Sarah owns a house, pays mortgage every month
John rents down the street, same neighborhood, same front
Both need shelter, both need walls and a place to sleep
But the taxman treats them different, inequality runs deep
Sarah's imputed rent flows free, no tax bill in sight
While John pays rent with after-tax dollars every night
Same economic function, housing is the need
But different tax treatment plants a very different seed
[Chorus]
Homeowner subsidy, hidden in plain view
Imputed rent tax-free, capital gains exempt too
Section forty-two-b, principal residence shield
While renters pay full freight with no tax break to yield
It's a political settlement, not economics true
Homeowner subsidy benefits the chosen few
[Verse 2]
Sarah deducts her mortgage interest in some structures she can find
Building equity tax-advantaged, wealth growing over time
When she sells her principal residence, gains are free and clear
Thanks to the exemption that makes her profits disappear
John gets no deduction for the rent that he must pay
No equity building up, no tax breaks come his way
After-tax income shrinking as rent takes its toll
While Sarah's wealth keeps growing toward her financial goal
[Chorus]
Homeowner subsidy, hidden in plain view
Imputed rent tax-free, capital gains exempt too
Section forty-two-b, principal residence shield
While renters pay full freight with no tax break to yield
It's a political settlement, not economics true
Homeowner subsidy benefits the chosen few
[Bridge]
Same roof overhead, same protection from the rain
Same economic function but treatment's not the same
The code creates divisions where logic should prevail
A settlement political, not principled in scale
[Final Chorus]
Homeowner subsidy, the system's hidden flaw
Three benefits stacked high within our tax law
Imputed rent, deductions, and exemptions that shield
While renters bear full burden with no relief to yield
Remember forty-two-b when you analyze the code
This subsidy's the thumb upon the housing load
[Outro]
Housing is housing, but taxes disagree
The homeowner subsidy shapes what we see