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Trump’s tax reform and NAR: The housing bias in tax policy

05/02/2017

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The National Association of Realtors’ (NAR) opposition to portions of President Trump’s proposed tax reforms has caused some unrest in the real estate industry. NAR has always stood firmly in support of the mortgage interest deduction (MID), and — importantly — the ability of homeowners to access it. Our members have set this as a mandate for many years. The President’s proposed tax reforms would lower tax rates overall, increase standard deductions, and keep the mortgage interest deduction in place. In practice, it’s likely that 90 percent of homeowners who currently use the mortgage interest deduction would lose that ability. Lower tax rates for all, higher standard deductions, more money for Americans to spend — it sounds difficult to argue with on the surface. Prioritizing incentives for spending, though, has always been complex. Incentivizing homeownership good for the country If we look at America’s tax code, it has rarely been truly laissez faire. We write …

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