NYSBA Fights For Tax Reform

NYSBA members from across the state are in Washington D.C. this week fighting for real tax reform for all New Yorkers.   Members met with John Faso, Elise Stefanik, John Katko, Lee Zeldin, Chris Collins and Tom Reed as a part of NAHB’s Tax Reform Fly-In.

Members emphasized to our Republican Congressional Delegation that the legislation hurts New Yorkers by effectively marginalizing the mortgage interest deduction.  Only high-income earners will be able to take advantage of this tax benefit. This is not a good expenditure of taxpayers’ dollars.

The legislation goes a step further by capping mortgage interest at $500,000 for new home purchases. This means that home buyers in expensive markets will effectively see the value of this housing tax incentive further diminished. The interest deduction for second homes and home equity loans is eliminated.

These changes slam the middle class by threatening the values of the largest asset held by most Americans and lowering household wealth.

The House bill will make it harder to finance production of affordable housing through the Low-Income Housing Tax Credit (LIHTC) at time when the nation already faces an affordability crisis. The bill proposes to eliminate the tax-exempt status of private activity bonds. This would effectively prevent developers from getting a 4% bond-financed project off the ground.

Meanwhile, as corporations receive a major tax cut, small businesses, which generate the lion’s share of job growth, get limited relief. In fact, some small businesses could see their tax liability increase under this proposal.

Pictured: NYSBA President and CRBRA member Eric Willson of The Michaels Group (left) and New York Congressman John J. Faso (right).