How the proposed tax code bill hurts Columbus, Ohio homeowners and home sellers.
If you’ve looked at your local news broadcast, picked up a newspaper or scanned your Facebook feed in the last 30 days you may have seen the recent news about the possible introduction of a tax reform plan currently up for debate in the United States Senate. What this bill fails to mention is its devastating effects on middle class homeowners and those wishing to sell their homes.
The Tax Cut and Jobs Act is a direct assault on homeowners with a three pronged blow to the middle class. The first is via the loss of tax incentives that come with eliminating the state and local property tax deduction. This elimination will create higher taxes for middle and working class families who own or wish to sell their home.
The second is the significant reduction in home values due to the changes to the capital gains exemption that will increase taxes now and when a home is sold and effectively shrink the current and future value of homes not only in Columbus, Ohio but across the United States.
The third is the elimination of multiple deductions for interest on home equity loans, eliminating deductions for moving expenses to only active duty military, and restricting deductions for personal casualty losses to just Presidentially declared disasters.
By eradicating the protections currently in place for homeowners to maintain their equity and protect themselves against natural disasters sends a clear message that the U.S. government will no longer value homeownership as not only a benefit to the strength of our economy but the backbone of what makes our nation independent and self sufficient.
This new bill will render the United States a nation of renters and line our neighborhood streets with triple the amount of foreclosed homes and abandoned properties than the most recent housing market collapse.
The National Association of Realtors, who is vehemently opposed to The Tax Cut and Jobs Act, released the following statement in regard to the recent House of Representatives passing of the bill:
“For more than a century American tax policy has recognized the value of homeownership to American middle-class wealth creation, strong and stable communities, and as a driver of our nation’s economy. Homeownership is not a special interest, it is our common interest, yet Congress would place the American Dream further out of reach for millions of Americans at a time when our homeownership rate is at a 50 year low. In short, the Tax Cut and Jobs Act is a serious step in the wrong direction.”
Though daunting, there is still time to oppose the Tax Cut and Jobs Act and send a direct message to Congress that the value of homeownership and the preservation of the middle class relies on a strong housing market that creates millions of jobs and builds enriched communities that strengthen the power of our great nation.
Contact your local representative now and urge them to vote NO #HR1. http://bit.ly/nartax2017