DeLauro Releases Report on Impact of Republican Tax Law on CT Homeowners
NEW HAVEN, CT — Congresswoman Rosa DeLauro (CT-03) today released a new report on how the Republican tax law is hurting homeowners across Connecticut. The report, prepared by the Democratic staff of the House Committee on Oversight and Government Reform, details the new financial penalties on homeowners, the estimated impact on Connecticut and Third District homeowners specifically, and the tens of billions of dollars in new tax breaks for real estate developers.
“The Republican tax law is hammering homeowners here in the Third District of Connecticut,” said DeLauro. “A home is often the centerpiece of a family’s nest egg—and they borrow against its value. However, under the new tax law, Connecticut homeowners that use home equity loans for something other than home improvement—such as medical bills, their child’s higher education, or even car repairs—will no longer be able to deduct their interest payments from their federal income taxes. At the same time, Republicans put no such restrictions on how billionaires and corporations could spend their $1.5 trillion tax cut. That is the height of hypocrisy.”
“The Republican tax law also limits families’ property tax deductions. Specifically, the Republican tax law restricts the SALT deduction, setting a limit of $10,000 for what homeowners may deduct in combined state and local taxes. This could lead to property tax increases for tens of thousands of families in our district,” continued DeLauro. “Meanwhile, the rigged for the rich tax law gives real estate developers nearly $67 billion in new tax breaks. Republicans should join Democrats in implementing an agenda that puts working people first instead of rigging the tax code to help millionaires, billionaires, and corporations.”
“Homeownership has traditionally been an effective tool in bridging the wealth divide for many low and moderate income families,” said Bridgette Russell, Director of Neighborhood Housing Services at the New Haven HomeOwnership Center. “The loss and restructuring of some of the historical deductions for homeowners, which made homeownership more affordable, will certainly negatively impact existing and future homeowners.”
“The so-called tax cut was passed without bipartisan support by both houses of Congress, and is detrimental to most Connecticut homeowners. It greatly benefits the super-wealthy in the United States, including Mr. Trump and his family,” said Jim Paley, Executive Director of Neighborhood Housing Services of New Haven.” I applaud Congresswoman DeLauro for her efforts to point out to the American people just how grave an injustice this so-called tax reform really is. “
A full copy of the report can be found here. Statistics of particular note in the report include:
- 38,700 homeowners in the Third District with home equity loans are now prohibited from deducting their interest payments from their federal income taxes unless those loans are used specifically for home improvement.
- 87,800 households in the Third District could see their property taxes increase.
- $66.7 billion in tax breaks are included in the Republican tax law for real estate developers.