Tax Reforms On The Way That Will Affect Real Estate
There’s been a lot of talk on the Hill about changing the tax code. Though it’s gaining some steam, we probably aren’t going to see anything for a while. It’s being proposed that taxes be lowered and deductions be reduced. At the end of the day, government will still take it from you.
Realtors® Oppose Tax Plan to Limit Mortgage Interest Deduction, Real Estate Provisions
WASHINGTON (February 26, 2014) – The following is a statement by National Association of Realtors® President Steve Brown:
“NAR supports reforms that promote economic growth, but we strongly oppose severely altering the rules that govern ownership and investment in real estate. Real estate powers almost one-fifth of the U.S. economy, employs more than 17 million Americans, and contributes a quarter of all federal and state tax revenue and as much as 70 percent of local taxes.
“We are extremely disappointed with several of the provisions contained in U.S. House Ways and Means Chairman Dave Camp’s tax reform draft released today, namely proposed limits on the mortgage interest deduction and capital gains, and the repeal of deductions for state and local property taxes. These proposed changes to the taxation of real estate will impact every single American, either directly or indirectly.
“NAR will carefully analyze the details of the Chairman’s plan so we can best educate Congress and the public about how this plan would impact the owners, consumers, and producers of both residential and commercial real estate.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
After you graduate, the US will be in the thick of the “generational theft” issue; here’s a heads-up on what this is all about. Generational accounting is an estimate of who benefits from and who pays for government programs. As shown in the first chart, the average person in the generation that turned 65 this year received $327 thousand dollars more in lifetime government benefits than they paid in Federal taxes. On the other hand, children born in the future (e.g., yours) will have a lifetime deficit on this basis of -$421 thousand dollars. If it sounds unfair, it is.
Overall, the new Census data shows household mobility decreased from the prior year. However, the reasons for moving are promising in that the most common reason for moving was to obtain new or better housing, followed by those wishing to establish their own household.