The GOP’s new tax plan, the so-called Tax Cuts and Jobs Act, “attacks homeownership,” according to a new statement from the National Association of Realtors (NAR).
NAR has been vocally opposed to the bill, which would significantly reduce homeowner deductions for interest on housing loans.
NAR President William E. Brown says the tax plan would stick future generations with a $1.5 billion price tag. While the standard deduction for homes would increase to $12,000 for single filers and $24,000 for married couples, the personal exemption and exemptions for dependents would be eliminated, according to NAR.
In a recent report, analysts cited by Bloomberg found that, with the new tax plan, the median U.S. household would find it cheaper to buy than rent in 42 percent of metropolitan areas, a sharp decline from the current rate of 52 percent.
NAR states that while the deduction for real property taxes remains intact in the plan, it would be capped at $10,000. Other deductions, such as those for state and local income taxes, would be eliminated in its current iteration, which would cause many homeowners to take the standard deduction and pay hundreds of dollars more in taxes than they do now.
All told, Brown says home values around the country would drop 10 percent or more, whether or not homeowners are personally affected by the bill.
“Hard-working homeowners will lose money when their home values fall, while corporations will get a huge tax break,” he said.