The GOP’s tax bill is set to disproportionately impact homeowners in affluent parts of the US.
Wealthier households are currently more likely to take advantage of key tax breaks that could be downsized, including the mortgage interest deduction, and the state and local tax (SALT).
Although this could weaken buying activity and prices, the high end of the housing market is also the smallest by share.
States that would be most impacted include New York, California, Connecticut, and Hawaii. The majority happen to also be blue states.
The GOP’s tax plan is likely to advantage wealthy Americans in a number of ways, including estate-tax and private-tuition benefits.
Where the housing market is concerned, proposed changes — particularly those in the House version of the bill — are set to disproportionately affect wealthier homeowners.
Many of the states with the most expensive housing markets, which include California, New York, and Hawaii also happen to lean Democratic. And while it might be a stretch to say the tax changes target blue states, they almost certainly would hurt high-income areas more.
Two policy proposals in the House and Senate versions of the bill are worth noting. First is the mortgage interest …read more
Source:: Businessinsider – Politics