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Your tax dollars at work: encouraging moral hazard



Do you have an elderly relative whom you're assisting by ensuring that they're paying their bills on time? Well, according to the federal government, you're a sucker. In 2002, Detroit resident Warren Hollis took out a reverse mortgage on the home of his mother, Texana Hollis, and then ignored months of warnings from the U.S. Department of Housing and Urban Development that he was late paying $7,000 in property taxes. "I kept it from her because I didn't want to worry her," he told a local news station. So HUD foreclosed and evicted Ms. Hollis. News reports incorrectly stated that the dispute was over $59.95, there was a public uproar, and the agency has responded by agreeing to waive the taxes and allow Ms. Hollis and her two grown children to move back in. So where do I go to ask the federal government to waive $7,000 of my taxes without penalty? [Detroit News and AP/WaPo, h/t BDJ]

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Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Katherine Lazarski
Press Officer,
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.