Congress should not shackle the housing industry: higher property tax is a mistake at this time. The housing industry is just beginning to encourage a cheering section once again. What is congress thinking by throwing any kind of wrench into the newly moving machinery? Builders need to know what the tax code will be. The fledgling return of the healthy housing industry should not have anything put in the way of its continued progress.
These are the entreaties made by the National Association of Home Builders. The simplification of the tax code is intended to assist small business. They can then promote more economic growth. It is alleged that the intricacies in taxing burdens small businesses unjustly. Small business is the stabilizing factor of the economy and now is not the time to hinder their success.
Reform is best left for a later time. It requires intense evaluation of all possible implications. The transition must be carefully planned to become effective in a smooth way.
Small businesses in the construction industry are set up to pay taxes on net business income. For their purposes, the individual income tax rates are their business tax rates. It is strongly suggested that the tax cuts established in 2001 and 2003 should be extended beyond the end of 2012, when they are supposed to expire. If they are not, it will be counterproductive to hobble the housing industry in any way at this time. Let the recovery proceed first. Changes can be delayed.
Other tax rates, such as capital gains, should be left at the current level to maximize the ability of the housing industry to be maintained until such time as normal sales percentages are reestablished.