50+ Housing e-Source - 11/23/2005 (Plain Text Version)

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In this issue:
NEWSWEEK Magazine: Turning 60 — Boomers at 60
National Survey Probes Trends, Characteristics of Older Home Buyers
Harvard Study: Housing Wealth and Retirement Savings
Register Today for the 2006 International Builders’ Show
Fair Housing: Learn about Accessibility, Age-Restriction, and Marketing
NAHB Focus Group to Address Section 8 Vouchers in Assisted Living Facilities
Industry and Member News
Save the Date: April 24-26, Building for Boomers & Beyond 2006
Tax Reform Panel Delivers a Harsh Blow for Homeownership

Tax Reform Panel Delivers a Harsh Blow for Homeownership

A presidential commission report proposing a radical overhaul of the nation’s tax code was blasted by NAHB as “the biggest tax hike for homeowners ever proposed” after it was presented on Nov. 1 to Treasury Secretary John Snow.

Developed by the President’s Advisory Panel on Federal Tax Reform over the past 10 months, the tax overhaul would collapse six income brackets into four, eliminate the Alternative Minimum Tax, and replace the popular mortgage interest deduction with a considerably more limited 15 percent tax credit. Also gone would be deductions for state and local taxes and interest deductions for home equity loans and second homes. The panel also recommended eliminating the Low Income Housing Tax Credit.

The panel’s recommendations now will be reviewed by the Administration, and if embraced by President Bush, could be included in his State of the Union address in January.

Several parameters governed the panel’s final recommendation. The proposal had to be revenue-neutral, promote homeownership and charitable giving, and repeal the Alternative Minimum Tax, which will cost approximately $1.2 trillion over the next 10 years.

Though President Bush explicitly stated that one of the objectives was to devise a plan that would promote homeownership, NAHB believes the panel’s recommendations would do just the opposite by wiping out several major housing tax incentives in the current code.

The White House is under no obligation to follow the panel’s findings.

For analysis from NAHB's economists on how the new plan would increase the federal tax liabilities of homeowners, housing-related provisions of the tax panel’s proposal, and related resources, visit www.nahb.org/taxreform or read the Nov. 7 issue of NBN Online.

For more information, contact Michael Strauss at mstrauss@nahb.com or call him at 800-368-5242 x8252.