Encourage Congress to reform our tax code and protect middle class homeowners in the process by taking part in an NAR Call for Action which starts today.
Ask your federal lawmakers to make sure the tax reforms they consider will treat homeowners fairly, reverse the decline in first-time home buyers, not cause another housing crash and preserve like-kind exchanges. Proposals that repeal or weaken tax incentives for homeowners, according to analysis from PricewaterhouseCoopers shows that middle-income families ($50,000 to $200,000) could be worse off – paying an average of $815 more taxes and taking on a larger share of the nation’s tax burden.
Although the nation’s tax code has encouraged homeownership, proposals that limit interest and property tax deductibility would reverse this course. A recent proposal to eliminate the mortgage interest deduction and the deduction for state and local property taxes could have negative effects on the housing industry, which saw the number of first-time home buyers at a 50-year low in 2016.
In Illinois, where 65 percent of homeowners had a mortgage in 2014, about 1.5 million taxpayers claimed the mortgage interest deduction and saved nearly $2.9 million in taxes. That was an average of $1,930 per taxpayer. About 1.8 million taxpayers claimed the real estate tax deduction, saving a total of nearly $2.9 million, or $1,620 a person, according to NAR calculations.
Do your part by following directions outlined in REALTOR® Party mobile alerts, emails or by going to the REALTOR® Party webpage to send messages to policymakers. In previous Calls for Action, more than 20 percent of Illinois REALTORS® membership has participated.
The more REALTORS® respond to the Call for Action, the stronger the message to elected officials.