Tax Reform and Housing: Part 2

Nef Cortez

By Nef Cortez

This past Friday I had the honor and pleasure of attending an event where the headline speaker was Secretary of The U.S. Treasury Steven Mnuchin.  The event was focused on presenting the Administration’s position on Tax Reform. The event was hosted by the Corona Chamber of Commerce at the beautiful Eagle Glen Country Club and Golf Course. (It remains one of my favorite golf courses that I have played-when I still could-nestled along the boundaries of the Cleveland National Forest, with expansive views of the Inland Empire Valleys and the San Gabriel Mountains). I was able to hear first hand from the Secretary of the Treasury the process that will follow in moving the “Tax Cut and Jobs Act” forward through Congress, and eventually, to the President for his signature. Secretary Mnuchin, in summary, explained that the details of the bill may look very different from the two separate bills moving forward in the House of Representative and the Senate. He explained how the two bills will have to be reconciled with each other, along with the current strategy of presenting legislation that will be “net neutral” to the approved budget.

Tax Reform will continue to be the hot topic of national debate on the Federal, State, and local levels between now and the end of December 2017. The Trump Administration is working hard to move forward on its promise to deliver on Tax Reform. It was one of President Donald Trump’s key campaign promises, and having failed to repeal and replace Obamacare as promised, the burden on the Administration to fulfill on this particular promise has greatly increased. Having failed on one promise, it has become even more important for Trump to successfully deliver on this other campaign pledge.

The National Association of Realtors, the California Association of Realtors, and many local associations of Realtors, such as Tri-Counties Association of Realtors, Citrus Valley Association of Realtors, and Inland Valley Association of Realtors currently oppose the present form of the recently disclosed Tax Reform plan. All of these associations have sent out a Call To Action to their members requesting they call their respective representatives in Congress and ask that they vote against Tax Reform in its current form.

I will continue to write on this issue as it evolves in the next few weeks, and if the final bill does not change from it current form as it relates to Housing, it will definitely have negative impacts and consequences to the Housing and home Financing industries.

This article was written by Nef Cortez, a licensed Real Estate Broker, Cal BRE # 00560181 since 1976. He can be reached via e-mail at nefcortez@gmail.com. Please feel free to email any questions regarding real estate.