The Central Valley Association of Realtors, along with the state and national associations, have come out against the Congressional Tax Cuts and Jobs Act proposed recently.
It is reported that the tax plan would severely reduce or eliminate tax incentives for homeownership.
“For centuries, middle-class families have built wealth through homeownership and real estate investment,” said Kris Klair, president of Lathrop-based CVAR. “Homeownership allows families to protect themselves against rising rents and inflation, while offering an opportunity to build equity over time.”
Klair went on to say that investing in a home is a great help to families looking to building wealth and shouldn’t be taken away.
The current tax law allows homeowners a deduction for mortgage interest paid, generally on mortgage debt of up to $1 million on primary residences and one additional residence.
According to a statement released by the Realtor association, home sales support, on average, more than 2.5 million private-sector jobs annually. Real estate accounts for more than 16 percent of the U.S. gross domestic product at nearly $3 trillion.
“If those incentives went away, homebuyers would see their dream pushed further out of reach, while current homeowners would have the welcome mat pulled right out from under them,” Klair said.
The Central Valley Association of Realtors is asking its members to contact local members of Congress to oppose the legislation or any that would reduce or remove incentives for homeownership.