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N.A.R. Call to Action- The Congressional Tax Cut and Jobs Act Dramatically Weakens Home-ownership Incentives

Posted by Taylor Thompson in Blog, Legal Articles, News | 0 comments

The Congressional Tax Cut and Jobs Act Dramatically Weakens Homeownership Incentives

Act Now! We’re Almost Out of Time!

C.A.R. and NAR are STRONGLY OPPOSING the Congressional Tax Cut and Jobs Act that was released this week. C.A.R. opposes the proposal because it dramatically weakens the tax code incentives for homeownership.

ACTION ITEM

 Ask your Member of Congress to oppose this and any tax reform proposal that dramatically weakens the incentive for homeownership.

 

Ask your Representative to OPPOSE this reform proposal because it dramatically weakens tax incentives for owning a home.

Call 1-800-278-3615

Enter Your PIN: 182028921or the PIN number FOUND HERE followed by the # sign to be connected to your Member of Congress’s office.

Call from 6:00 AM to 2:00 PM Pacific Time Weekdays

When staff answers the phone, you can use the following script:”Hi, this is (insert your name). I’m a constituent and a REALTOR®. Please ask my Representative to OPPOSE this and ANY tax reform proposal that WEAKENS THE INCENTIVE TO OWN HOMES.”

C.A.R. OPPOSES the Tax Cut and Jobs Act Because:

We must reverse the decline in California’s homeownership rate. For over 100 years Congress has incentivized homeownership with the tax code; currently through the mortgage interest deduction.  Any effort at reforming the tax code should maintain and prioritize this incentive. The current proposal only pays lip service to incentivizing homeownership. The proposed changes will result in only top earners itemizing their deductions. Therefore, the vast majority of people will no longer receive any tax incentive to purchase a home. So, while the proposal keeps the mortgage interest deduction, the incentive effect of the deduction for Americans to become homeowners disappears.

 

It weakens the mortgage interest deduction.

  • It caps the mortgage interest deduction to the interest on a mortgage principle of $500,000.
  • Homeowners would no longer be able to deduct the interest they pay on home equity loans.
  • The deductibility would be eliminated for second homes and limited to loans on a family’s primary residence.

 

Families build wealth through homeownership. According to a report by the Federal Reserve in 2016, homeowners amassed wealth at a greater rate than renters. Renters had a median net worth of $5,200 while homeowners had a net worth of $231,400.

 

For More Information

Contact Rian Barrett at rianb@car.org.

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