you're reading...
News and Info

House GOP Tax Plan Would Impact Key Housing Tax Provisions

 

Tax form 1040 with US dollars 

House Speaker Paul Ryan and Ways and Means Committee Chairman Kevin Brady today unveiled the tax policy plank of a six-part House GOP policy agenda that would overhaul the tax code and affect important housing tax provisions.

Responding to the plan in an official statement, NAHB Chairman Ed Brady acknowledged the House GOP leadership for attempting to set a bold vision, but cited major concerns regarding key housing tax provisions. He pledged to work with Congress to ensure that any tax reform efforts recognize that housing is a key driver to ongoing economic growth.

Here is Brady’s full statement:

“If the goal of the blueprint is to grow the economy and incentivize investment, then the biggest investment most Americans make, the purchase a home, should be reflected in our nation’s tax priorities. Although the plan attempts to set a bold vision, the blueprint makes fundamental structural changes to the tax system that will dramatically reduce the number of itemizers, effectively eliminating the value of the mortgage interest deduction for middle-class Americans.

“Equally troubling, the plan fails to see the need to maintain one of the nation’s most successful anti-poverty programs, the Low Income Housing Tax Credit. Moreover, it fails to address the fate of two other vital housing tax incentives: like-kind exchanges and the capital gains exclusion for the sale of a home.

“Many in Congress have looked back to the tax reform efforts in 1986 as a guide forward for today. And there are some important lessons to remember from that experience. First, it is possible to achieve those low rates and maintain strong incentives for housing. But we also saw for commercial and multifamily real estate the perils of significant tax policy changes. Most economists agree that the changes in the 1986 Act led to a crisis in commercial and multifamily real estate. How housing is dealt with in tax reform will shape the economy moving forward.  Housing can be a key engine of job growth that this country needs.

“NAHB believes that lower rates, simplification, and a fair system will spur economic growth and increase competitiveness. And that’s good for housing, because housing not only equals jobs, but jobs means more demand for housing. To foster that virtuous cycle for economic growth, we believe strongly that Congress must look upon changing the homeownership tax incentives with caution. All it takes is a 1% decline nationwide in home prices to wipe out $220 billion in household wealth, and we have all experienced first-hand the damaging economic effects of falling home prices during the Great Recession.

“Though Speaker Paul Ryan and Ways and Means Committee Chairman Kevin Brady have put forth a GOP tax reform blueprint aimed at putting economic growth at the forefront of the agenda, the plan ignores the importance of housing as a primary source of wealth, security and social stability. We look forward to working with Congress to ensure the next generation tax code recognizes that housing is a key driver to economic recovery and ongoing economic growth.”

About HBA of Delaware

HBA/DE has been an integral part of the growth and economic development of the State of Delaware since 1947. HBA/DE was founded as a non-profit state affiliate of the National Association of Home Builders (NAHB) representing home builders and other businesses directly related to Delaware's Home Building Industry. Consisting of Builders, Remodelers and a group of diversified associate members, the Home Builders Association of Delaware strives to protect and preserve housing as a symbol of America. www.hbade.org

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

back to HBADE Website

RSS NAHB Now

  • Comment Period for WOTUS Rule Withdrawal Extended August 22, 2017
    EPA and the Army Corps of Engineers are extending the comment period by 30 days for a proposed rule that will roll back the flawed 2015 “waters of the U.S.” (WOTUS) definition.
    NAHB Now
  • Association Excellence Awards Honor Innovative Membership Programs August 22, 2017
    This week we continue to recognize the winners of this year's Association Excellence Awards by focusing on the Membership pillar, which emphasizes effective recruitment and retention strategies, as well as other member-related programming.
    NAHB Now
  • NAHB Unveils New Stormwater Management Toolkit August 22, 2017
    The more complicated the rules become, the more information is needed to advocate for smart, flexible and cost-effective stormwater management. The brand-new NAHB stormwater toolkit has got you covered.
    NAHB Now
%d bloggers like this: