How the GOP Tax Plan Could Impact D.C. Suburbs
Last week, the House Republicans released the long-awaited tax reform bill. But how exactly will this plan affect homeowners? According to a recent Washington Post report, the bill could have a startling impact on residents in the suburbs of Washington D.C.
Rep. Jamie B. Raskin’s district in Maryland, Rep. Gerry E. Connolly’s district in Virginia, and Rep. Barbara Comstock’s district in Virginia all have a higher percentage of residents who claim income tax deduction than any other district in the country. According to a 2015 report from the Government Officers Finance Association mentioned in the Washington Post report, 49 percent of residents in these districts take advantage of state and local income tax deductions. But provisions in the new tax plan could cut this tax deduction benefit.
Congressional republicans hope this new plan will simplify the tax code and jumpstart the economy, while democratic leaders find the corporate giveaways in the revised tax plan comparable to trickle-down economics.
“Making our tax code more pro-growth and pro-family and providing tax cuts for our businesses and our hard-working families has always been a priority of mine,” Comstock said in a statement.
Others, especially those who follow the real estate market, are less optimistic.
“We’re a little shellshocked because there’s even worse impact than we initially thought in this package,” Bob Adamson, chairman of the board of directors of the Northern Virginia Association of Realtors, said in the report. “We see it as a giveaway for corporate America at the expense of regular American taxpayers, including homeowners.”
Vicky Chrisner is a Realtor in Loudoun and Fairfax. She is afraid that changes to deductions would crush the housing market. Low interests, she explained, keep sales robust. “I don’t think it will be nearly as impactful in our area than the hype would have you believe.”