Tax reform bill is penalty on homeowners

Since the United States federal income tax system began in 1913, it has included incentives to promote the American dream of homeownership. Now, the U.S. Congress is considering a fast track overhaul of the tax code that will change the value system that has so long promoted homeownership and all its tangible benefits to our citizens and our society.

Specifically, the proposal caps the mortgage interest deduction at a level below the median price in many areas of the nation, removes home equity loan deductibility, caps state and local property tax exemption (double taxation for some and particularly impactful for seniors who own homes), and negatively changes the capital gains treatment in the sale of primary residences.

According to the National Association of Realtors, the net effect of these changes will be an average federal income tax increase of $815 for middle class homeowners and a 10 percent drop in home values. To quote the association's president, "Tax hikes and falling home prices are a one-two punch that homeowners simply can't afford."

This is essentially a penalty on homeowners and a policy shift indicating that the American dream of homeownership is no longer a public priority. These tax reforms will change the character of our communities by further reducing homeownership rates, which already took a hit during the last recession.

Homeownership is the American dream. It is the biggest wealth-builder for the middle class and an economic engine for our nation as a whole. It is imperative that Congress modify these proposed changes and preserve the real benefits of homeownership for hard working Americans.

Bob Dohn

Schaumburg