After being out of the spotlight for months, comprehensive Federal Tax Reform is gathering headlines again. While restoration of the Mortgage Cancellation Debt Relief is the primary short-term tax concern for REALTORS, remaining on watch for larger proposals that affect real estate is always an important component of our advocacy efforts.
The Chairman of the House Ways and Means Committee, Dave Camp (R-MI) released his discussion draft for comprehensive reform of the tax code yesterday. Chairman Camp has been working with his staff and Republican members of the Ways & Means Committee to develop the draft over the past couple of years, yet the contents of the discussion draft was one of Washington’s best-kept secrets.
NAR President Steve Brown immediately sent a letter saying in part, “ We are extremely disappointed with several of the provisions contained in U.S. House Ways and Means Chairman Dave Camp’s tax reform draft released today, namely proposed limits on the mortgage interest deduction and capital gains, and the repeal of deductions for state and local property taxes. These proposed changes to the taxation of real estate will impact every single American, either directly or indirectly.”
It is important to remember that the Camp bill is only a discussion draft and because of the political landscape and timeline, NAR does not believe any tax reform bill will become law this Congress. Please stay tuned for more details and analysis from NAR.