NAR Gives Trump Tax Reform Plan a Thumbs-Down

May 22, 2017

The tax reform plan outlined by the Trump Administration could raise taxes on many middle-income homeowners, according to a study commissioned by the National Association of Realtors (NAR) and prepared by PwC.

The study, titled, "Impact of Tax Reform Options on Owner-Occupied Housing," forecasted that while the majority of Americans would see a tax decrease under the outline of the tax reform proposal offered last month by the administration, homeowners with adjusted gross incomes between $50,000 and $200,000 could see their taxes increased by an average of $815. The study also estimated that the combined tax savings from claiming the mortgage interest deduction and real estate property tax deductions would plummet by 82 percent between the 2018 and 2027 period.

Furthermore, the report theorized that the tax reform proposal—which has yet to be finalized for presentation before Congress—would result in a home value loss by an average of more than 10 percent in the near term.

"Tax reform and lower rates are worthy goals, but only if we can achieve them in a fiscally responsible way," said NAR President William E. Brown. "Balancing tax reform on the backs of homeowners isn't an option."

About the author

Phil Hall

Link copied

Published

May 22, 2017

Regulation and Compliance

Fed Holds Rate Steady at 5.25% to 5.5%

Beginning in June, the Committee will slow the pace of decline of its securities holdings.

With inflation showing no signs of slowing down, the Federal Reserve showed no signs of cutting rates anytime soon Wednesday, as predicted. The Federal Open Market Committee announced its decision to hold interest rates steady for the sixth consecutive time at the conclu...

Construction

Home Builders Say Policymakers Have The Power To Ease Affordability

New plan put forth by trade association offers 10 solutions to nation's housing problem

With housing affordability having reached crisis levels nationally, America’s home builders are stepping in with a formula they believe will provide real solutions. The National Association of Home Builders (NAHB) today unveiled a 10-point plan to address the nation’s est...