Home Builders ask Congress for Certainty in Tax Code

April 19, 2012

The National Association of Home Builders (NAHB) called on Congress today with a earnest request: Simplify the tax code in order to help small businesses.

Small businesses are the backbone of the economy by being the largest creator of jobs. The majority of the residential construction sector is made up of small businesses. These businesses are pass-thru entities, meaning they pay individual tax rates on their net business income.

Tax Code PicThe complexity of today’s tax law is a burden and impedes small businesses according to Marty Mitchell, a Maryland home builder, speaking on behalf of the NAHB before the House Small Business Committee.

“The home building community supports simplifying the tax code as part of a comprehensive tax reform process,” said Mitchell. “Such an effort should only occur after a thoughtful and deliberate vetting process that examines proposed changes, necessary transition rules and economic impacts.”

The NAHB is urging Congress to extend the 2001 and 2003 tax cuts currently set to expire at the end of 2012.

“We need permanency in the tax code and certainty for small businesses,” said Mitchell.

If Congress makes no changes and the tax cuts expire by the end of the year, the top marginal tax rate will jump from 35 percent to 39.6 percent along with rate increases at the lower brackets.

The NAHB is hoping Congress will take into account the association’s concerns on the following issues:

  • Extending the current 15 percent rate on dividends and capital gains.
  • Keeping the mortgage interest deduction from being pared down or eliminated as part of any tax reform effort.
  • Provide a tax exclusion for business debt forgiveness and maintain this exclusion until the business economic climate improves.

“Such a tax policy change would enable small, family-owned firms to avoid bankruptcy and contribute to the economic recovery as individual local markets improve,” said Mitchell.

How do Chicagoland home builders and small businesses feel about the concerns the NAHB has regarding the tax laws? Please let us know.

Categories: Economy, Featured, Mortgages, NAHB

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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