Published in SF Chronicle on Sunday October 29th, 2017
Why do the National Association of Realtors and National Association of Homebuilders oppose the Republican tax bill? What needs to change?
Realtor organizations and home builders oppose the newly proposed tax bill because it will eliminate real property taxes and mortgage interest deductions and will raise taxes for the middle class families, especially in California.Decades ago, Congress passed legislation to encourage home ownership and allows families to deduct state and local taxes and mortgage interest on their income taxes. The rationale is that home ownership is the primary vehicle for building long term wealth in the middle class and a source of stability, pride and cohesiveness for local communities.
According to the NAR, roughly 20 percent of the nation’s economy is dependent on real estate. Those businesses directly tied to home ownership include industries that supply raw materials and manufactured goods as well as home enhancement, maintenance and repair services.
The new tax bill will reduce the benefit of home ownership across the county, but it will have the strongest damage in high cost areas, such as the California. Real estate values tend to be higher in many of the Blue States in last year’s election and these are the places where people are most dependent on itemizing to itemize to reduce their taxes.
John Solaegui, Paragon Real Estate Group, (415) 999-0673, [email protected].
