Commentary Southern California is expected to build 1.5 million new homes throughout the next eight years. That was the finding of a recent pronouncement by California’s department of housing and community development. Even so, President Joe Biden’s administration is proposing a change in the federal tax code that could severely limit the likelihood that such housing will get built. As part of its proposal to spend some $3.5 billion on social programs and industrial programs and another $500 million on infrastructure, the Biden administration is proposing a number of ideas it thinks will increase tax revenue, including raising the corporate tax rate from 22 percent to 28 percent. One such tax proposal would affect the cost of capital for real estate investors by changing how they defer capital gains. Following basic economic laws of supply and demand, an increased cost to anything will lead to fewer of those things being …