REALTORS® support tax reform - but not on the backs of middle class homeowners!
Take action now to protect your business, your clients, and home ownership incentives.
REALTORS® are OPPOSED to the tax reform bills pending in the House and Senate. These bills are a direct threat to consumers, to homeowners and to our businesses. Not only will millions of homeowners not benefit from the proposal, many will get a tax increase!
Additionally, homeowners could lose substantial equity from the more than 10 percent drop in home values likely to result if the bill is enacted.
TheColumbus Dispatch reported that some middle-income households would pay higher taxes under the Senate's proposed plan, according to a study by the congressional Joint Committee on Taxation.
According to the bipartisan congressional study:
- Seven percent of all American households in 2019 will pay at least $500 a year or more in higher taxes under the Senate Republican plan
- 10.4 percent of households with incomes between $75,000 and $100,000 a year are predicted to pay at least $500 more annually in federal taxes
- 15.6 percent of households earning between $100,000 and $200,000 a year would pay at least an extra $500 annually in federal taxes in 2019.
Bipartisan analysis: Senate bill would hike taxes for 13.8 million moderate-income American households.
The House bill:
- Limits the exemption on Capital Gains Tax from the sale of a primary residence
- New rules would require homeowners to live in their home for 5 of 8 years before a sale to qualify for the exemption, versus just 2 of previous 5 years today. This will create a hardship to homeowners who have to move inside that five-year window.
- Eliminates the deduction for state and local income or sales taxes.
- Eliminates the Mortgage Interest Deduction for second homes.
- Eliminates the deduction for moving expenses.
- Eliminates the deduction on interest on student loans.
- Eliminates the deduction for medical expenses, even for the elderly.
- Eliminates the deduction for personal casualty losses, such as from hurricanes or wildfires.
All this from a bill that is supposed to improve the current system.
Not only is this legislation a clear and present danger to American home ownership, it will cost our children and grandchildren $1.5 trillion in new federal debt.
Please take action now!
NAR Issue Brief - Senate Tax Reform
NAR Issue Brief - House Tax Reform
Tax Reform Talking Points
Ad: Don't slam the door on home ownership
NAR Tax Reform web page