šØ BIG: Trump Mulls Removing Capital Gains Tax on Home Sales š”šø
š Whatās 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 šš¬ .
He specifically referenced Rep. Marjorie Taylor Greeneās recently introduced No Tax on Home Sales Act, saying it ācould be a very big positiveā for homeowners .
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š Why It Matters
**š„ 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 .
**š”ļø Homeowner Relief**: Currently, only the first $250Kā$500K gain is exempt. Many middle-class sellers exceed this limit and face surprise tax bills .
**š° 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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š® Whatās 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 itās 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 listingsāand potentially warmer housing sector activity.
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š Quick Take
Trumpās proposal could be a game-changer for homeowners, making it easier to move without penaltyāespecially for long-time owners. But it also heightens the wealth vs. fairness debate and stakes for national finances.