๐จ BIG: Trump Mulls Removing Capital Gains Tax on Home Sales ๐ก๐ธ
๐ Whatโs Announced:
President Trump said his administration is considering eliminating the capital gains tax on home sales, particularly primary residences, during a recent Oval Office press briefing. He noted it could be unnecessary if the Federal Reserve lowers interest rates ๐๐ฌ .
He specifically referenced Rep. Marjorie Taylor Greeneโs recently introduced No Tax on Home Sales Act, saying it โcould be a very big positiveโ for homeowners .
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๐ Why It Matters
**๐ฅ Cool on Housing Market**: With home prices and mortgage rates still high, removing the tax could incentivize owners to sell, boosting supply and easing affordability pressures .
**๐ก๏ธ Homeowner Relief**: Currently, only the first $250Kโ$500K gain is exempt. Many middle-class sellers exceed this limit and face surprise tax bills .
**๐ฐ Wealthy Benefit?** Critics say the move would largely benefit affluent homeowners and could strain the federal budget if not offset by service cuts .
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๐ฎ Whatโs Next?
Congress Must Act: This change requires legislation. The No Tax on Home Sales Act is pending in the House Ways and Means Committee .
Political Pressure Building: Supporters argue itโs a smart incentive for sellers, while opponents warn it could cost the federal government billions and increase inequality .
Macro Impact Watch: If enacted, expect a rise in home listingsโand potentially warmer housing sector activity.
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๐ Quick Take
Trumpโs proposal could be a game-changer for homeowners, making it easier to move without penaltyโespecially for long-time owners. But it also heightens the wealth vs. fairness debate and stakes for national finances.
