Congressional Leaders Worry Home Prices Will Fall if Proposed Tax Reforms Pass
The U.S. House of Representatives recently passed a budget increasing the likelihood that proposed tax reforms will be enacted. Top Democrats worry the reform will cut home prices by 10 percent, citing a study released earlier this year by the National Associaton of Realtors.
According to the report, 35.4 million households claim itemized deductions for mortgage interest, and about three-quarters of those households have incomes between $50,000 and $200,000, says MarketWatch.
An estimated 40.7 million taxpayers take the property tax deduction right now, and 70 percent of them have adjusted gross incomes between $50,000 and $200,000, according to the report. Homeowners with mortgage balances between $100,000 and $500,000 would see their income taxes rise, while households with mortgages greater than $500,000 would, on average, see a net tax decrease.