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National Association of Realtors opposes Republican tax reform plan


COLLEEN THE NATIONAL ASSOCIATION OF REALTORS SAYS IT FEARS THE REPUBLICAN TAX REFORM PLAN COULD DRIVE DOWN THE VALUE OF YOUR HOME. COLLEEN: NBC4’S WASHINGTON CORRESPONDENT JESSICA SMITH IS LIVE IN OUR NATION’S CAPITOL TONIGHT WITH THAT STORY…. JESSICA? JESSICA: THE NATIONAL ASSOCIATION OF REALTORS IS FIGHTING BOTH THE SENATE AND HOUSE TAX REFORM BILLS. THE REAL ESTATE LOBBY SAYS THE TAX CODE NEEDS TO BE SIMPLIFIED – BUT THIS IS NOT THE WAY TO DO IT. THE NATIONAL ASSOCIATION OF REALTORS ESTIMATES A 10 PERCENT DROP IN HOME VALUES IF THE HOUSE OR SENATE BILL IS SIGNED INTO LAW. LAWRENCE YUN: IT WILL LEAD TO A RENTER NATION AND AWAY FROM AN OWNER NATION. THE NATIONAL ASSOCIATION OF REALTORS SAYS DOUBLING THE STANDARD DEDUCTION MEANS FEWER PEOPLE WILL USE THE MORTGAGE INTEREST DEDUCTION. CHIEF ECONOMIST LAWRENCE YUN SAYS THAT WILL GIVE PEOPLE LESS INCENTIVE TO BUY A HOME. LAWRENCE YUN: OVER LONG PERIOD RENTERS DO NOT ACCUMULATE WEALTH. SO IT WOULD NOT BE GOOD FOR THE COUNTRY. JESSICA SMITH REPORTING . THE ASSOCIATION ALSO EXPECT STATES IN EXPENSIVE REGIONS OF THE COUNTRY WILL BE HIT THE HARDEST — BECAUSE MORE PEOPLE USE THE MORTGAGE INTEREST AND PROPERTY TAX DEDUCTION. LAWRENCE YUN MIDWEST, FORTUNATELY, HIGHLY AFFORDABLE REGIONS OF THE COUNTRY// THERE WILL BE LESS OF AN IMPACT IN THE MIDWEST. BUT REPUBLICANS ARGUE DOUBLING THE STANDARD DEDUCTION WILL PUT MORE MONEY IN TAXPAYERS’ POCKET. REPUBLICAN SENATOR TIM SCOTT: SEN. TIM SCOTT: WE WANT TO MAKE SURE WE LIFT SOME OF THE BURDEN, BY LETTING YOU KEEP MORE OF YOUR HARD-EARNED MONEY. REALTORS ALSO WORRY ABOUT THE TAXES HOMEOWNERS PAY AFTER SELLING THEIR HOMES. CURRENTLY — HOMEOWNERS MUST LIVE IN THEIR HOME FOR 2 YEARS BEFORE SELLING, IN ORDER TO AVOID CAPITAL GAINS TAXES. BOTH THE HOUSE AND SENATE PLAN CHANGE THAT TO FIVE YEARS. LAWRENCE YUN: MILITARY FAMILIES WHO HAVE TO MOVE MORE FREQUENTLY, OR YOUNG FAMILIES WHO FIND DIFFERENCE JOBS IN NEW CITIES, THEY NEED TO QUICKLY MOVE. NOW THE TAX STRUCTURE IS PENALIZING FOR PEOPLE WHO HAVE TO MOVE WITHIN FIVE YEARS. REALTORS FEAR ALL THESE FACTORS COULD SEND HOME PRICES TUMBLING. JESSICA: SENATOR PORTMAN WAS AT THE WHITE HOUSE TALKING TAX REFORM TODAY. WE ASKED HIS OFFICE ABOUT HOW TAX REFORM MIGHT IMPACT HOMEOWNERS – A SPOKESPERSON SENT US A STATEMENT THAT DIDN’T ADDRESS THE HOMEOWNER ISSUE, BUT SAID THE BILL WILL BENEFIT THE MIDDLE CLASS AND INCREASE WAGES FOR WORKERS. LIVE IN WASHINGTON JESSICA SMITH NBC 4.

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