Why Does Real Estate Matter in the Tax Reform Debate?
Some may say that all we are doing here today is protecting a special interest. If so, it is a “special interest” that affects the two-thirds of all Americans who own their home. This homeownership rate is an all-time high. By contrast, during the decade of the 1980’s, homeownership rates actually declined, dipping to about 62 percent. Given the progress over the past five years in not only reversing the decline, but actually reaching the highest homeownership rate in our history, it is difficult for us to understand why we would want to do anything to disrupt housing markets by changing the tax system. Individuals in every income class own homes. Notably, the lower the family’s income, the greater the proportion of their wealth is tied up in their homes. According to the Federal Reserve, even at the $10,000 household income level, almost 35% of households own a home, but only 8% of these households own stock. By contrast, the wealthiest 1% of households own 43% of all direct stock hol
