Congress is discussing possible tax changes to the tax code. In doing so, it is essential that lawmakers take the right approach to foster economic growth. It is critical for future economic prosperity that Congress not harm job creation and recovery in the construction industry. Therefore, NAHB opposes any changes to the tax code that would increase taxes on home owners, renters or home builders.
NAHB supports homeownership and rental housing incentives in the current tax code, specifically the deductions for mortgage interest and state and local property taxes as well as provisions that encourage development of affordable housing. NAHB believes that the mortgage interest deduction and other housing tax incentives have helped the U.S. create the best-housed nation on earth.
Why It Matters
Many tax reform proposals being discussed have suggested reducing or eliminating the mortgage interest deduction; the Low Income Housing Tax Credit; the capital gains exclusion for home sales, and the deduction of property taxes, amongst others. These proposed tax increases would further depress home prices, put countless more home owners underwater, and trigger a new wave of foreclosures. Eliminating or scaling back these vital housing incentives would also shrink the local tax base of many communities, causing already cash-strapped state and local governments to further cut jobs and essential services.
NBC’s Jim Cramer on Tax Reform: Home Builders are Powerful