NAHB Opposes House Democrats’ Plan for $2 Trillion in New Taxes
NAHB is sounding the alarm to lawmakers as House Democrats within the Ways and Means Committee begin consideration of a massive overhaul of the tax code which would generate over $2 trillion in additional tax revenue over the next 10 years.
While the legislation also includes critical and much-needed affordable housing investments, this is far outweighed by trillions of dollars in job-killing tax hikes — which risk broad harm to the still fragile economy — along with direct and indirect cost increases on housing.
These changes are being considered to fund part of the Democrats ambitious Build Back Better plan, which focuses on what the White House refers to as "human infrastructure."
The most concerning tax changes in the plan would:
- Increase the marginal tax rates on individuals as well as corporations;
- Reduce 1202 gains for certain small business investors;
- Increase the capital gains rate;
- Expand the application of the Net Investment Income Tax to active income;
- Limit 199A deductions;
- Alter the estate tax that may affect family-owned businesses; and
- Otherwise limit business losses.
Many of these tax hikes will inevitably be passed along to new home buyers and renters and will result in a reduction of home building activity at a time when greater supply is urgently needed.
NAHB is fully engaged with Congress and working to blunt or roll back these proposed tax increases. If the Democrats remain unified, the procedural process being used by the Democrats allows them to move forward without Republican support, avoiding the filibuster in the Senate. This process has been used various times by both parties to enact many policy priorities, including by Republicans to enact tax reform in 2017 and Democrats to overhaul the health care system in 2010.
Latest from NAHBNow
May 28, 2025
Remodeled Show Home Returns for IBS 2026 with a Fresh, Real-World ApproachAs the International Builders’ Show (IBS) returns to Orlando in 2026, so too does one of its most anticipated exhibits: The New American Remodel. After a brief hiatus following IBS 2023, the showcase will once again share the spotlight with The New American Home.
May 27, 2025
How Housing Professionals Can Navigate the Current Sales MarketIn an upcoming Shop Talk titled "Content Marketing Strategies for Home Design Professionals," learn how builders, architects and marketers can use storytelling, digital platforms and visual content to showcase cost-effective design solutions, increase market visibility and strengthen connections with potential buyers.
Latest Economic News
May 28, 2025
Aging-in-Place Remodeling Work Fell While Familiarity and Receptiveness Remain HighOnly 56% of professional remodelers undertake projects designed to allow homeowners to Age-in-Place (AIP), according to results from NAHB’s Q1 2025 Remodeling Market Index (RMI) survey.
May 27, 2025
Building Material Price Growth Minimal in AprilPrices for inputs to new residential construction—excluding capital investment, labor, and imports—fell 0.4% in April, following a (revised) increase of 0.8% in March. These figures are taken from the most recent Producer Price Index (PPI) report published by U.S. Bureau of Labor Statistics.
May 26, 2025
State-Level Employment Situation: April 2025Nonfarm payroll employment increased in 40 states in April compared to the previous month, while it decreased in 10 states and the District of Columbia. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 177,000 in April following a gain of 185,000 jobs in March.