H.R. 1, Congressional “Tax Reform” Bill Dramatically Weakens Homeownership Incentives!
This Congressional “Tax Reform” bill will be voted on Thursday! C.A.R. (California Association of Realtors) opposes the proposal because it dramatically weakens the tax incentives for homeownership.
H.R. 1, Congressional “Tax Reform” bill weakens the mortgage interest deduction.
● It caps the mortgage interest deduction to the interest on a mortgage principle of $500,000.
● Homeowners would no longer be able to deduct the interest they pay on home equity loans.
● The deductibility would be eliminated for second homes and limited to loans on a family’s primary residence.
Families build wealth through homeownership. According to a report by the Federal Reserve in 2016, homeowners amassed wealth at a greater rate than renters. Renters had a median net worth of $5,200 while homeowners had a net worth of $231,400.
Tax Reform Disproportionately Hurts Californians. California is already a “donor” state, paying more in tax revenues to the federal government than it gets back. As a matter of fact, California ranks 42nd out of 50 states in the amount of federal spending per capita in the state. Now, without being able to fully deduct their state and local taxes, Californians will shoulder even more of the federal tax burden.
Here’s What Else the Bill Does:
● Eliminates state and local income tax deductions.
● Taxpayers won’t be able to deduct their student loan interest.
● Medical expenses won’t be deductible.
● Many small businesses won’t benefit. A Lot of small businesses that are classified as professional service providers won’t be able to get the lower corporate tax rate.
What can you do? Contact your Representative as soon as possible and ask them to OPPOSE this proposal!
Published on 2017-11-15 05:00:22
