Carlson: US election – very different results for real estate industry depending on who wins White House – Daily Independent

John Carlson

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By John Carlson | President, Mark-Taylor Companies

The countdown to the 2024 US election has begun, and exercising your right to vote is both a privilege and a responsibility. The most important thing is to understand who and what you are voting for – and the impact the new president will have on the future of the country, its economic strength and sustainability.

The Harris/Waltz and Trump/Vance campaigns offer contrasting solutions to the housing crisis and the broader economic landscape—issues that affect all Americans. While one focuses on tax cuts and deregulation to spur growth, the other emphasizes increased taxation and regulation to address systemic problems.

Taxation

Trump and Harris take two completely different approaches when it comes to taxation. Trump’s ticket emphasizes tax cuts as a means of spurring economic growth and investment. Building on the Tax Cuts and Jobs Act of 2017, which lowered corporate taxes during his administration, the proposal seeks to lower the corporate tax rate from 21% to 15% and permanently expand the capital depreciation rules. expenses.

On the other hand, Harris’ ticket supports increased taxation, including a tax on unrealized gains, which some say could negatively impact housing investment and home ownership. Their plan to address the housing crisis includes building three million new housing units, offering tax incentives and down payment assistance for first-time home buyers, and creating a $40 billion fund to promote affordable housing.

Although this plan seems idealistic, achieving these goals will require increased taxation. A Harris/Waltz administration will introduce a tax on unrealized gains that will not only hurt homebuyers and homeowners, but also destroy housing investment.

Regulation

Harris’ regulatory agenda includes the Stop Predatory Investments Act to curb large-scale acquisitions of real estate by institutional investors.

While Trump’s regulatory agenda is less detailed, his position on deregulation is clear, particularly in the housing sector. He advocates reducing regulations on home builders and generally supports allowing the private sector to operate with minimal government oversight. His broader philosophy leans toward deregulation in various sectors, including energy and housing, in favor of private sector control.

By comparison, under today’s Biden-Harris administration, there is an increase in housing regulations. A notable example is the $1.7 trillion in new federal regulatory spending incurred over the past three years, which has contributed to challenging market dynamics.

The current state of the market places further emphasis on the need to ease industry pressures to better serve future residents through policy reform and construction. This would provide those looking for a home with the opportunity to secure their ideal lifestyle on their terms.

Regardless of how you define your political affiliation, our nation’s next leader must prioritize growth within the housing and real estate markets. As the country grapples with a $35 trillion debt, there must be a balance between fiscal responsibility and support for homeowners, renters and property operators.

Given the stakes in this election, voters must thoroughly evaluate each candidate’s policies, putting aside partisanship to focus on the issues that will shape our country’s future. Ultimately, the best choice for you will reflect your priorities for both your community and our nation.

Editor’s note: John Carlson president of the Mark-Taylor Companies. The capital gains tax he talks about would only affect those with a net worth of $100 million or more. Reader reactions, pro or con, are welcome [email protected].