Capping mortgage deduction will hurt, not help, all levels of Colorado homebuyers as prices continue to rise
The National Association of Home Builders is opposing the tax plan unveiled last Thursday by House Republicans. The association and its members have long advocated to protect and enhance the American Dream of homeownership—and this tax plan would likely put homeownership in jeopardy for many Coloradans.
NAHB’s chairman Granger MacDonald, a homebuilder from Texas, commented on the plan:
- “Capping mortgage interest at $500,000 for new home purchases means that home buyers in expensive markets will effectively lose this housing tax benefit moving forward. The House leadership killed a cost-effective plan proposed by NAHB that Ways and Means Committee leaders agreed to include in the legislation. It would provide a robust homeownership tax credit that would have helped up to 37 million additional home owners who do not currently itemize. Most of them are low- and moderate-income home owners.”
Colorado’s housing market has become one of the more expensive in the nation, with median single-family home prices well over $350,000. In the metro Denver region alone, the median single-family home price is $400,000. That means many Coloradans, including middle class homebuyers, are purchasing homes with mortgages above this $500,000 cap arbitrarily placed into the Republican tax plan. Furthermore, doubling the standard deduction puts homeownership tax incentives beyond the reach of more than 90% of American families.
Americans need a meaningful incentive for homeownership in the tax code, and NAHB believes several parts of the tax plan will hurt homeowners and actually reduce the value of homes for millions of Americans.
To better understand why NAHB is opposing the tax plan, please visit the following links:NAHB's Tax Reform Page
Let your Member of Congress know this plan doesn’t work, it only takes a minute.
NAHB will be leading this effort and communicating to all members nationwide with action alerts and policy updates. Please look for those in your email and take action when they arrive. CAHB will provide support and assistance to help NAHB’s efforts and to ensure that Colorado’s housing market stays strong and accessible.
Please contact me at 303-691-2242 or firstname.lastname@example.org if you have any questions or concerns.