November 2, 2017

STATEMENT OF LEADING BUILDERS OF AMERICA ON TAX REFORM

WASHINGTON DC - Leading Builders of America (LBA) CEO Ken Gear issued the following statement on the tax bill released today by House Republican leaders.

“LBA is encouraged by many of the pro-growth aspects of the House’s tax proposal.  We believe that a combination of lower rates and a simplified tax system will fuel economic growth.  We understand that producing tax reform legislation is a challenging task that requires difficult choices and we applaud House leadership and the Ways and Means Committee for crafting a proposal aimed at boosting our nation’s economy and sparking job creation.  

While we feel confident that the bill is on the right track to accomplish those goals, we remain concerned about the unintended consequences for both well-qualified prospective new homeowners and current homeowners.  Under the House bill, prospective homeowners will be subject to higher after-tax mortgage costs and a limited ability to deduct property taxes, inevitably leading to lower home values for current owners. 

We appreciate the bill’s focus on generating job and wage growth, but under the terms of the current legislation home ownership receives no substantive preference – despite the many benefits ownership creates for consumers, our communities and the economy.  The current mortgage interest deduction and the deductibility of state and local property taxes have provided valuable economic benefits for decades and cannot not be modified without risking economic harm. Therefore, we will continue to work with House and Senate leaders to ensure that the final bill includes adequate incentives for homeownership as tax reform legislation moves through the process.”

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Leading Builders of America (LBA) is a trade association representing twenty of the top homebuilders in the country which collectively build approximately one-third of all new homes in the United States.  LBA members build a wide range of home types including traditional single-family homes, townhomes, condominiums, apartments, retirement and second homes in 34 states.

? LBA member companies are: Ashton Woods Homes; Beazer Homes; CalAtlantic Group; David Weekley Homes; D.R. Horton; Hovnanian Enterprises; KBHome; Brookfield Residential; Lennar Corporation; MDC Holdings (Richmond American); Meritage Homes; M/I Homes; Perry Homes; PulteGroup; Shea Homes; Taylor Morrison; The Drees Companies; Toll Brothers; TRI Pointe Group; Woodside Homes.

Tax Reform