New tax plan raising eyebrows at REBNY.REBNY REBNY Real Estate Board of New York has voiced concern about the repercussions repercussions npl → répercussions fpl repercussions npl → Auswirkungen pl that could result from a newly-appointed government tax commission. The new commission has been charged with identifying and examining alterations to the current federal income tax system. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. REBNY president, Steve Spinola, the commission's recommendations for simplifying the tax code, due next summer, could include the elimination of city and state taxes as deductions from federal tax. Such a reform could put a damper damp·er n. 1. One that deadens, restrains, or depresses: Rain put a damper on our picnic plans. 2. An adjustable plate, as in the flue of a furnace or stove, for controlling the draft. on the entire city economy and discourage the residential real estate boom. "Because New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. has such a high taxation rate at the local and state level, if the federal government made this change, the current 11-12% deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. would be gone and everyone would have to pay a lot more taxes," Spinola said. "Everybody wants to be in Manhattan which is why this city is so great, but this is something that could change that, and that in turn would affect real estate prices, especially in the residential market." While such changes to the tax code are far from being instated, Senator Hillary Clinton, speaking on January 10 at the Corcoran Group's 2005 award ceremony, held at the Ziegfeld Theater, stressed how important it was for the real estate industry to join the fight against such tax reform. Spinola pointed out that the real estate industry has a history of resisting changes to tax deduction Tax deduction An expense that a taxpayer is allowed to deduct from taxable income. tax deduction See deduction. policy, including in 1986, when the Reagan Administration Noun 1. Reagan administration - the executive under President Reagan executive - persons who administer the law passed a tax reform act. "Lew Rudin took the lead in forging a national coalition that made sure that reforms to deductions were not part of the 1986 tax act," Spinola said. "Senator Clinton was perfectly correct in saying what she did, this is something we cannot ignore." Teresa Hall, executive vice president and director of sales at the Corcoran Group, pointed out how tax reforms could affect real estate directly. A potential change that would bar co-op owners from deducting property taxes--which are included in maintenance fees--from their federally taxed income almost certainly would spur a dent in record residential pricing. "Everyone asks what percentage of their maintenance fee consists of the co-op's property tax payment," Hall said. "So it's definitely a consideration residents have when buying a property. They might select a co-op where a bigger percentage of the maintenance goes towards the property tax because that's a tax deduction they can use. "If they don't have that tax deduction, buyers just won't have the same amount of money to spend." President Bush has named tax reform as a principal objective of his domestic policy. |
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