That’s according to the National Association of Realtors which says that changes to the tax code could lead to a tax on homeownership which would all but nullify the incentive to purchase a home for most, and put home values across the country at risk.
“We have always said that tax reform – a worthy endeavor – should first do no harm to homeowners. The tax framework released by the Big 6 today missed that goal,” said NAR president William E. Brown.
“This proposal recommends a backdoor elimination of the mortgage interest deduction for all but the top 5% who would still itemize their deductions,” he said. “When combined with the elimination of the state and local tax deduction, these efforts represent a tax increase on millions of middle-class homeowners.
Mr Brown said that plummeting home values would be a tremendous blow to older Americans depend on their home to provide for their retirement as well as for recent homebuyers.
He added that the NAR is looking forward to continuing the discussion in the weeks and months ahead and that Congress can still promote lower taxes and comprehensive reform without hurting homeowners.
More market update:
If the tax proposals from the group of legislators and administrators known as the Big 6 were to be implemented, millions of middle-income homeowners would lose out.