NAR ramps up lobbying efforts – NAR’s president elect visited lawmakers on both sides of the aisle yesterday to advocate for tax policies that encourage homeownership – and against policies that would create new challenges for buyers.
WASHINGTON – April 27, 2017 – Major reforms are needed to lower tax rates and simplify the tax code, but that shouldn’t come at the expense of current and prospective homeowners, according to National Association of Realtors® (NAR) President William E. Brown, a second-generation Realtor from Alamo, California.
Brown said that while the President’s tax proposal is well-intentioned, it’s a non-starter for homeowners and real estate professionals who see the benefits of housing and real estate investment at work every day.
By doubling the standard deduction and repealing the state and local tax deduction, the plan would effectively nullify the current tax benefits of owning a home for the clear majority of tax filers.
“For over a century, America has committed itself to homeownership with targeted tax incentives that help lower- and middle-class families purchase what is likely their largest asset,” Brown says. “No surprise, real estate now accounts for over 19 percent of America’s gross domestic product, or more than $3 trillion in investment.
“But for roughly 75 million homeowners across the country, their home is more than just a number. It represents their ambitions, their nest egg, and the place where memories are made with family and friends.
“Targeted tax incentives are in place to help people get there. The mortgage interest deduction and the state and local tax deduction make homeownership more affordable, while 1031 like-kind exchanges help investors keep inventory on the market and money flowing to local communities.”
Brown says the homeownership tax incentives are at risk under the president’s tax plan.
“Current homeowners could very well see their home’s value plummet and their equity evaporate if tax reform nullifies or eliminates the tax incentives they depend upon, while prospective homebuyers will see that dream pushed further out of reach,” Brown says.
However, Brown emphasizes the fact that Realtors support tax reform.
“We believe tax rates should come down to the degree that sound fiscal policy allows, and simplifying the tax code will help ensure fairness and transparency for individual taxpayers. It’s a goal we share with the authors of this tax plan, but getting there by eliminating the incentives for homeownership is the wrong approach.”
© 2017 Florida Realtors