Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas, has issued the following statement on the tax plan that will be put forth by Republican members of the House Ways and Means Committee:
“Lawmakers missed an opportunity to give the American people a tax reform package that would boost middle-class families and promote greater housing opportunity for Americans across the economic spectrum.
“This plan is disappointing, given that the nation’s home builders warned that the proposal would diminish the effectiveness of the mortgage interest deduction and presented alternative policies that would retain an effective housing tax incentive in the tax code.
NAHB worked with leaders of the House Ways and Means Committee to develop a homeownership tax incentive that will ensure the middle class – not the wealthy – benefits. Last week, it appeared that we had a deal that would establish a homeownership tax credit that would benefit tens of millions of households. Unfortunately, we were told by the House leadership that the credit will be removed from the bill.
“By reducing the number of taxpayers who would itemize, what’s left is a tax bill that essentially eviscerates the mortgage interest deduction and strips the tax code of its homeownership tax benefit. This tax blueprint will harm home values, act as a tax on existing home owners and force many home buyers out of the market.
“Given that owning a home is an asset for most American households, it makes little sense to offer a tax bill that effectively abandons the nation’s long-standing commitment to housing.
“This plan will hurt millions of American families and marginalize homeownership. The American people deserve better.”
2 Comments
That may reduce the itemized deduction, but please analyze the amount of tax reductions on the same middle class tax payer. Then tweek it to bring a balanced approach.
The new Tax Bill is very disappointing to say the least. It stips away the one incentive for a husband and wife with no kids to buy instead of rent, which is the Mortgage Interest Deduction. I believe this will have a negative effect on home ownership with any age group. Rental prices will most like go up as well since they will be in greater demand. This leaves the middle class as the victim, not the recipient of the new Tax Plan.