If there is one industry that has benefited from the current tax laws, it’s the real estate industry. This is an industry that for the last 30 years has sheltered under the generous tax deductions. This works by ensuring there are no hiccups to owning homes. At the same time, they used to achieve this as they were protected by local taxes. However, they say that they are now threatened as a new tax code makes its way through the Congress. They have openly admitted that the new law will make their business difficult. This will arise from the fact that homeownership will become less attractive and less valuable. They want to maintain their status as the favored class when it comes to taxes. They have shown their panic by staging protests. At the same time, they are doing this by warning their customers about the rocketing tax bills when the current legislation passes.
Finally, they are showing their fear by calling legislators and expressing their concerns. Bakersfield Association of Realtors is one of these real estate organizations that’s resulting in desperate measures. At the moment, their chief executive is Linda Joy. She recently said that they are neither Democrats nor Republicans. Instead, they consider themselves as the Realtor party. Barely a week ago, the organization managed to stage a demonstration at Kevin McCarthy’s office. Mr. McCarthy is the representative of their area. The carried signs and placards asking the representative to save homeownership. The chief executive of the institution acknowledges that the majority leader has a tough task ahead. Nonetheless, she said that they felt obligated in telling him how they feel about the tax repeal. Their fears have been shared by some economists. There are fears that the current version will result in the elimination of local property taxes deductions.
These are deductions that cannot go above $10,000. The fear is that this move will result in raised costs when it comes to homeownership. There are fears that the current version will increase the time that it takes for these people to get capital gains taxes exclusions. As a result, this will cause a decrease in transactions that are made annually. Moody Analytics chief economist Mark Zandi says that the new version will have losers and winners. For instance, he lamented that for people living in New Jersey and New York, they would have some hard times. On the other hand, people living in Nebraska and West Texas stand to gain.