The current tax reform planwould weaken the tax incentives for owning a home, such as the mortgage interest deduction. Also it tax will increase taxes on middle-class homeowners through the elimination of the state and local tax deduction.
The tax reform framework recently released by congressional leaders and the White House promises to lower taxes for the middle class and to create economic growth. However, by repealing the deduction for state and local taxes, as well as most other deductions, while raising the standard deduction, it would eliminate the time-honored tax incentives of owning a home for 95 percent of current and prospective homeowners. It could also lower the value of all homes by more than 10 percent and damage growth.
Further, because this kind of tax reform would repeal personal and dependency exemptions, millions of middle-income home-owning families could end up paying more tax.
Homeowners already pay 83 percent of all federal income taxes, and this should not go higher in order to fund a tax cut for corporations. Tax reform is important, but should first, do no harm.
We do need to reform the tax code AND protect middle class homeowners but not turn America from a home-owning nation to a home-renting nation!