Category Archives: Tax Policy

Could Trump tax bill trigger a housing crash?

Reducing or eliminating the deductions for state and local taxes won’t just cost some people money in terms of increased taxes. The Republican bills could also push down property values, attacking the most valuable assets many families have.

As The New York Times reported,”An analysis of the Senate bill by Moody’s Analytics concluded that home prices in Manhattan could fall nearly 10 percent in the coming years because of the bill.”

What for now is unknown is how many properties that are currently valued for more than any loans against them could wind up being underwater after the full effects of the legislation are felt. With properties being worth less because of the reduction of the tax benefits of home ownership, some people with significant loans could find that their homes will not longer sell for enough to cover underlying loans.

I have no way of knowing if so many properties will be underwater after this legislation that another real estate crash could be triggered. The question is whether banks and other lenders holding these loans know.

Trump’s tax plan benefits — Trump. Surprised?

Now we know what Donald Trump, the presidential candidate who won’t release his own tax returns, wants to do about taxes: Cut them for people like himself. His August speech in Detroit outlined his plans, which fall in line with what House Republicans, including zombie-eyed granny-starver Paul Ryan (thanks to Esquire’s Charles P. Pierce )have… Continue Reading

Don’t believe everything you read about the tax code — even in the New York Times

Reporting in 2014 on a proposed tax overhaul that went nowhere, The New York Times  referred to “the 70,000-page federal tax code.” People, I come bearing good holiday tidings:  The federal tax code is nowhere near that long. As Andrew L. Grossman, an attorney with the Congressional Joint Committee on Taxation, points out in Slate,… Continue Reading

Republican fantasy tax plans all “puppies and rainbows”

Let me paraphrase Josh Barro of The New York Times in summing up the tax talk you’re hearing in the Republican Presidential Debates: It’s all puppies and rainbows. As Barro points out here, Marco Rubio would eliminate all taxes on capital gains, which of course would benefit those in the U.S. who have accumulated the most… Continue Reading