Trump’s Trillion-Dollar Hit to Homeowners – By reducing deductions for real estate taxes, Trump’s 2017 tax plan has harmed millions — & helped give corporations a $680 billion gift.

Read the Story

Show Top Comments

This is a good illustration of the dichotomy that exists within housing policy. The crux of the argument is that Trump has harmed millions by causing home prices to fall. “Zandi says that because of the 2017 tax law, U.S. house prices overall are about 4% lower than they’d otherwise be. The next question is how many dollars of lost home value that 4% translates into. That isn’t so hard to figure out if you get your hands on the right numbers. But one person’s lost capital gain is another person’s lower monthly payment and the overall impact is progressive. Homeowners (generally older and wealthier) have lost while renters and buyers (generally younger and poorer) have benefited. And, of course, all of this is against a backdrop of rising prices generally and a substantial affordability problem that nearly everyone believes exists.

crimsonkodiak

Good. Those deductions should never have existed in the first place. Its doublespeak to say you want to tax the wealthy and then complain about removing SALT

sportsarefun918

Of course it “harmed” millions; top 1% of the country’s income earners number 3.5 million people. Because the SALT deduction is still 10,000, the only people negatively impacted by this are higher income earners and high net worth individuals. The vast majority of the people who are ostensibly harmed by this are high income earners in states with high state income taxes. Good luck making the case that the tax code needs to be changed to benefit that group.

es330td

The tax cuts cut taxes for 80% of Americans; since when is r/economics against getting rid of loop holes in favor of just reducing the overall tax burden? SALT deductions are a subsidy to rich people and rich states, I wish he had gotten rid of them completely.

ihaveaquestion02

The tax benefit was baked into home prices. The deductions primary beneficiaries were real estate agents who saw greater commissions from increased home prices.

riggmislune