NAR Support Letter to Representative Sherrill Regarding the SALT Relief and Marriage Penalty Elimination Act

On April 6 NAR sent a letter to Representative Sherrill.The letter thanks Representative Sherrill for introducing legislation to increase the limitation on the deduction for state and local taxes. The SALT Relief and Marriage Penalty Elimination Act would significantly increase the tax incentives for purchasing and owning a home for millions of Americans. For tens of millions of Americans, limiting the amount of state and local taxes that can be deducted greatly diminished or erased the long-standing tax incentives of owning a home. Moreover, the SALT cap features two inherent flaws that are inequitable in their treatment of taxpayers. First, because the limit is the same for single and for joint filers, it results in a serious penalty on marriage. Second, because it was not indexed for inflation, the limit effectively goes down each year, unfairly affecting even more Americans as home values – and thus property taxes – rise. If enacted, Representative Sherrill’s legislation would help correct many of the aforementioned problems.