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
Oct 02, 2025
Vermont Executive Order Addresses Builders' Top PrioritiesTwo Vermont Builders and Remodelers Association members stood with Gov. Phil Scott as he signed an executive order to address regulatory barriers, permitting challenges and energy code standards in the state.
Oct 01, 2025
Get National Resources for Local Issues with NAHB's Legal Action FundNAHB’s Legal Action Fund provides support for members facing critical legal challenges that directly impede their ability to develop land and build homes. The current deadline to apply for support is October 28.
Latest Economic News
Oct 01, 2025
Consumer Confidence Drops on Job ConcernsConsumer confidence fell to a five-month low as consumers remain concerned about reignited inflation and a weakening labor market amid economic uncertainty. The labor market differential, which measures the gap between consumers viewing job as plentiful and hard-to-get, has narrowed for nine straight month and is now at lowest level since March 2021.
Sep 30, 2025
Construction Labor Market SoftensThe count of open, unfilled positions in the construction industry decreased in August, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The decline occurred as home building weakened in 2025.
Sep 29, 2025
Characteristics of Homes Built in Age-Restricted CommunitiesIn 2024, approximately 43,000 homes were built in age-restricted communities, representing just over 3% of all housing starts. According to the Census Bureau’s Survey of Construction, roughly three-quarters of these homes (32,000) were single-family units.