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Keep reading for a look into how eliminating income taxes couldimpact the housing market for both buyers and sellers.
According toRealtor.com, home prices in the U.S. rose on average 46.6% between May 2019 and May 2024.
However, two-thirds of states with no income tax outpaced this price growth.
This could stimulate demand for homes, driving up prices and benefiting sellers and the overall economy.
Money is still needed for infrastructure improvements and public schools.
To accomplish this, some states could increase property taxes on homeowners.
How this would affect families would depend on things like home values and income.
Property taxes would likely increase to compensate local governments for lost revenue, Cabrera said.
As a result, current homeowners may struggle to keep up with higher taxes and some could face foreclosure.
Ive seen property taxes significantly impact homeowners, especially those on fixed incomes.
Higher costs often force people to sell, even if they want to stay in their homes.
However, reduced federal revenue would threaten mortgage interest deductions and programs that support affordable housing.
This is quite a big difference and will get larger without an income tax.
Trumps plan could widen the gap between the top earners, upper middle class and lower class American households.
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