ConDig (9-Sept-21). Leaders of the US homebuilding industry have heavily criticized plans by House Democrats to raise marginal tax rates on individuals and corporations.
The National Association of Home Builders (NAHB) said the raft of tax proposals, which includes a hike in the top corporate tax rate from 21% to 26.5%, would inevitably be passed along to new home buyers and renters — resulting in a reduction of home building activity at a time when greater supply is urgently needed.
The Ways and Means Committee is considering a massive overhaul of the tax code which would generate over $2 trillion in additional tax revenue over the next 10 years.
It also includes a plan to reduce 1202 gains for certain small business investors; increase the capital gains rate; expand the application of the Net Investment Income Tax to active income; and limit 199A deductions. It also features an alteration to the estate tax that may affect family-owned businesses, according to the NAHB.
The association added that it is fully engaged with Congress and working to blunt or roll back these proposed tax increases.