Our message to the Trump administration and Congress is to ensure that any tax reform efforts protect vital housing tax incentives that are needed to keep housing and the economy moving forward.
Initial proposals being floated out of Capitol Hill would double the current standard deduction from $12,600 to $24,000 for joint filers, or $6,000 to $12,000 for single filers.
With a standard deduction that large, most households would forgo itemizing, which would dilute the effectiveness of the mortgage interest deduction.
In a recent interview with nationally syndicated real estate columnist Ken Harney, NAHB CEO Jerry Howard warned that this approach, absent further steps to encourage homeownership, could severely weaken the long-standing special status of housing in the federal tax code.
“From the inception of the tax code, our public policy has been consistently in favor of incenting people to buy homes,” Howard said.
“To water down that incentive for most taxpayers, he (Howard) believes, would be a social and economic mistake,” Harney added.
NAHB has positioned itself so that we will have a seat at the table as the tax reform debate moves forward this spring and summer. We will continue to work with policymakers to achieve lower rates for small businesses and hard-working American families and to assure that Congress takes the right approach to protect home owners and renters to foster economic growth.