General Discussion

It would potentially place more high end inventory on the market.

But it’s important to understand that those who benefit by the change are high-earning senior knowledge workers, professionals, many C-suite executives, and those mansion-and-yacht owning capitalists laughing all the way to the bank. It’s not the vast working class that will see any (positive) impact. What’s in this Administration for them?

Sellers subject to the tax may have more incentive to sell. Corporate buyers (and all buyers) would have more top market homes to choose from, thereby potentially decreasing the sales price and increasing the number of closings. The corporate buyer would still have to pay capital gains taxes up the line when they sell as they won’t, I assume, be using the purchased homes as their primary residence. But the “other buyers”, who more likely will use the home as a primary residence, won’t have to pay taxes on the portion of gain with the next sale (over the $250k/500k lifetime exclusion). However, who benefits?

I think the median price of a home in the US is now around $450k. Those substantially above the median will have less taxes to pay, but, for most owners below the median, there is no impact. Hard to be above the $500k exclusion when the sale price of the house is under $250k. So, once again, Repubs propose to give money to the already-well-off while leaving the rest of us holding the bag in the form of declines in quality and availability of services and scope of governance.

Another instance of Republican class theft from the don’t-have-much to the already-have-plenty — i.e., from struggling workers and lower level managers, to professionals and mansion-and-yacht-owning capitalists.