As a REALTOR® you have no doubt heard about tax reform plans from Washington, DC. Now Congress is threatening tax incentives for homeowners, like the mortgage interest deduction and the state and local property tax deduction. These incentives are critical for a strong housing market that creates jobs and builds stable communities. Do not let tax reform become a tax increase for middle class homeowners.
Homeownership is the bedrock of our industry and we need to make sure any tax reform legislation protects middle class homeowners.
In a recent statement, C.A.R. President Geoff McIntosh said, “The tax reform proposed by the Republican leadership will eliminate the incentive for people to buy homes, shrink the middle class, and raise taxes on hundreds of thousands of California homeowners. The doubling of the standard deduction, coupled with the elimination of state and local tax deductions, such as property taxes, will adversely impact California and its housing market. The average California homebuyer could end up paying $3,000 more a year in taxes under today’s proposal.
- Did you know that American homeowners already pay 83% of all federal income taxes?
- Did you know that some of the tax reforms under discussion could result in a drop of more than 10% in home values?
- Did you know that after the 1986 Tax Reform Act property values in the commercial sector dropped significantly, negatively impacting state and local tax revenue?
- Did you know that home-owning families with incomes from $50,000 to $200,000 could face average tax hikes of $815 in the year after enactment?
Tell Congress – Do not raise taxes on middle class homeowners in order to cut taxes for corporations. Share this Call to Action and use this hashtag on your social media accounts #SaveHomeOwnership