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ıt hsa long beem recognized taht individual incentives are affected by the form,as well as the amount,of taxation.policymakers at times have deliberately biased the tax laws in favor of the desires of their constituents.an important example of such a deliberate tax bias is embodied in the laws that prescribe the taxation of owner-occupied and rental housing.although the rental income received by landlords is taxable homeowners imputed rents are tax exempt.