If enacted, SB2224 would significantly alter the financial landscape for large-scale property owners and investors. By disallowing tax deductions for interest payments and depreciation specifically related to rental properties, it could potentially discourage large investors from entering or maintaining large portfolios of single-family rentals. This could lead to an increase in homeownership opportunities for average citizens, as the reduced presence of large investors might ease competition for homes, thereby stabilizing or lowering home prices in certain markets.
Summary
SB2224, known as the Stop Predatory Investing Act, seeks to amend the Internal Revenue Code of 1986 to disallow interest and depreciation deductions for taxpayers owning 50 or more single-family rental properties. The bill aims to target large investors who are perceived to contribute to housing unaffordability and market distortions, by eliminating tax benefits that facilitate the accumulation of large rental property portfolios. Proponents argue that limiting these deductions is essential to preserving affordable housing for first-time buyers and low-income families.
Contention
The bill has ignited debate among various stakeholders, particularly between housing advocates and influential real estate investors. Supporters of the bill assert that it is a necessary measure to prevent homelessness and ensure housing affordability, while critics argue it could reduce the availability of rental properties and lead to market instability. Furthermore, opponents warn that the elimination of these tax deductions may also deter investment in the rental market altogether. Thus, the bill represents a pivotal discussion in the balancing act of ensuring housing affordability while maintaining a robust rental market.
Freedom to Vote Act Voters’ Access to Water Act Right to Vote Act Automatic Voter Registration Act of 2023 Help America Run Act Government By the People Act of 2023 Restoring Integrity to America’s Elections Act Stop Super PAC–Candidate Coordination Act Spotlight Act Honest Ads Act DISCLOSE Act of 2023 Democracy Is Strengthened by Casting Light On Spending in Elections Act of 2023 Voter Confidence and Increased Accessibility Act of 2023 Deceptive Practices and Voter Intimidation Prevention Act of 2023 Democracy Restoration Act of 2023 Voter Registration Modernization Act of 2023 Voter Empowerment Act of 2023
FairTax Act of 2023 This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2025, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions. Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines. The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury. Tax revenues are to be allocated among (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund. No funding is authorized for the operations of the Internal Revenue Service after FY2027. Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.