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."