US tax cuts will reduce incentive to build affordable housing-campaigners

December 24, 2017                     By; Gregory Scruggs, Reuters

SEATTLE - The new US tax bill could have a negative impact on the production of affordable housing at a critical time of rising demand across the country, according to low-income housing advocates.

The US Congress passed the Tax Cuts and Jobs Act of 2017 and President Donald Trump signed the bill on Dec. 22, keeping a promise to deliver a tax cut by Christmas. But the 503-page bill, which critics say was rushed through Congress for speedy passage, could leave some collateral damage in its wake when it comes to affordable housing programs, according to the National Low Income Housing Coalition.

US President Donald Trump displays his signature after signing the $1.5 trillion tax overhaul plan in the Oval Office of the White House in Washington, Friday.  Photo: Jonathan Ernst, Reuters

"This bill will exacerbate our country's already yawning income inequality and will harm efforts to end homelessness and housing poverty," coalition President and CEO Diane Yentel said. Housing advocates' main concern is how the reduction in the corporate tax rate impacts the market for Low Income Housing Tax Credits, the fiscal mechanism responsible for the largest share of privately-built affordable housing in the United States...............Read More