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Election 2024: Housing, Tax, and Financial Policies at a Crossroads
With the 2024 presidential election less than 70 days away, the multifamily housing sector finds itself at a critical juncture. The National Multifamily Housing Council (NMHC) recently released a comprehensive report detailing where Vice President Kamala Harris and former President Donald Trump stand on key issues affecting our industry. Their divergent approaches could significantly impact housing, tax policy, and financial services in the coming years.
Housing Policy:
Vice President Harris, building on the Biden administration's policies, has shown a tendency towards increased government intervention in the housing market. She publicly supports a 5% cap on annual rent increases, a move that could dramatically alter the landscape for property owners and managers. Her track record includes sponsoring the Rent Relief Act during her Senate tenure, which proposed creating a refundable tax credit for renters spending over 30% of their income on rent and utilities.
In contrast, former President Trump's housing policies lean heavily towards deregulation and market-based solutions. The Republican Party's 2024 platform under Trump proposes opening portions of federal lands for new home construction and offering tax incentives to support first-time buyers. During his previous term, Trump's administration terminated the Obama-era Affirmatively Furthering Fair Housing regulation and raised the threshold for disparate impact liability.
Tax & Economy:
On the tax front, Harris supports raising the corporate tax rate from 21% to 28% and increasing the capital gains tax rate. As a senator, Harris introduced the LIFT the Middle-Class Act, proposing a refundable tax credit for low to moderate-income earners.
Trump, on the other hand, aims to cement his legacy by extending or making permanent the tax rate reductions from the Tax Cuts and Jobs Act of 2017. He's proposed further reducing the corporate tax rate to 20% and has suggested eliminating federal taxation on tip income. To offset costs, Trump has floated the idea of a 10% baseline tariff on all imports, with a 60% tariff on imports from China.
Financial Services:
In the financial services realm, Harris has been supportive of increased Consumer Financial Protection Bureau (CFPB) oversight of various lenders. She's backed legislation to require the Federal Reserve to conduct stress tests on large financial institutions for climate-related financial risks. During her 2020 campaign, Harris proposed a financial transactions tax on stock, bond, and derivative trades.
Trump has promised to repeal the Dodd-Frank Act and reduce what he sees as burdensome, anti-growth regulations. He's taken a pro-cryptocurrency stance on the campaign trail, a reversal from his position as President. Trump has also vowed to end the Securities and Exchange Commission's (SEC) climate rule and limit employer offerings of ESG funds in retirement plans.
These policy differences could have far-reaching impacts on our industry. From potential rent control measures to changes in tax rates and financial regulations, the outcome of the 2024 election could significantly reshape the business and housing environment. In these uncertain times, staying informed and nimble will be key. As always, CALCAP is committed to navigating these changes and positioning the company thrive in any regulatory environment. We have a feeling these next couple of months will be very interesting!
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