A new Redfin survey asked 900 potential homebuyers if they would consider moving to a different city or state if new tax legislation passes, removing the ability to deduct for state and local taxes. 32.9 percent said they would.
The House and Senate are currently reconciling their bills before sending the legislation to President Donald Trump for approval. The Day reports that tax bill supporters argue it will help lower taxes for lower- and middle-class households, and encourage job growth by lowering corporate tax rates. Opponents say it will add to the deficit, benefit the upper class at the expense of lower classes, with little to no benefit to the economy.
The uncertainty of the tax reform bill is looming on our customers' minds, and it has caused well-qualified clients who have found a home they like to hold off until the matter is resolved," said Kalena Masching, a Redfin agent serving the Silicon Valley market in California. "In a market like ours where potential loan amounts regularly hit six figures and residents pay high state taxes, the proposed tax reform has serious ramifications for homeowners."
