According to the latest study, most Americans would see a tax decrease under such a proposal - but many middle class would see a net average tax increase. Taxes paid by homeowners with adjusted gross incomes between $50,000 and $200,000 would rise by an average of $815. The study also estimates that the combined tax savings from claiming the mortgage interest deduction and real estate property tax deductions would drop 82% between 2018 and 2027.
Tax reform and lower rates are worthy goals, but only if we can achieve them in a fiscal responsible way. Balancing tax reform on the backs the home owners isn't an option. In addition to increasing taxes on many middle class home owners, the report finds that such a proposal could cause home values to fall more then 10% in the near term. and in areas with higher property taxes or state income taxes, the drop can be even greater.
Blake Anthony Papalia
Broker
