Trump Aligns with MTG s Effort to Reform America s Real Estate Rules

To be honest, the majority of housing policy news is dull. However, Donald Trump’s proposal to remove the capital gains tax on property sales drew my attention—and I’m sure it did yours as well. That is significant.

When a reporter questioned him about eliminating the tax to assist stimulate the housing market at a July 22 White House Q&A, the idea was born. Trump’s reaction? We are considering that. He went on to say something even more intriguing: the Federal Reserve might not even need to slash taxes if they simply lowered interest rates.

That one incident sparked a series of events that included national homeowners wondering, “Could this really happen?” and media headlines and political responses.

This goes beyond election-year hoopla. The No Tax on Home Sales Act, a genuine measure introduced by Representative Marjorie Taylor Greene, is directly supported by Trump’s comment.

This story likely seems personal to you if you’ve been holding on home equity and are terrified of the IRS bill that comes with selling. You’re not alone, either.

I will explain what Trump and MTG are putting forward, why it is important, and what the experts believe. But first, what is this tax that they are discussing eliminating?

What Exactly Is Trump Proposing on Capital Gains Tax?

You’re not imagining the issue if you’ve ever considered selling your house but put it off due to the tax burden.

The IRS currently allows you to deduct up to $250,000 in gains from the sale of your primary residence (or $500,000 if you’re married and filing jointly). However, you must pay capital gains tax on the remaining amount if your house has increased in value more than that, which is typical these days.

Since 1997, this exemption has not been modified. And that figure seems out of date given how much home values have increased since then.

Trump enters the picture at that point.

When a reporter asked him in a July 22 Q&A if he would think about removing the capital gains tax on property sales in order to increase supply, he replied, “We’re thinking about that.” However, he also blamed the Fed, claiming that lowering interest rates might unleash the housing market just as much, if not more.

The comment was first reported by Yahoo Finance, and it gained popularity right away.

In simple terms, then? Trump has hinted at a desire to completely do away with the capital gains tax on property sales, at least for principal residences.

And that might make all the difference.

MTG s No Tax on Home Sales Act And Why Trump s Backing It Matters

Trump is not merely speaking spontaneously here.

Rep. Marjorie Taylor Greene (MTG) presented the No Tax on Home Sales Act a few days prior to his remarks. It would remove federal capital gains taxes on the sale of your principal residence, just as it sounds.

Whether you agree with her views or not, the bill is real. With Trump’s name on it now, it has additional clout going into the 2025 election season.

This suggestion might result in you keeping tens of thousands of dollars rather than giving them to the IRS if you have years’ worth of equity in your house.

Actually, Trump has already proposed a tax plan pertaining to housing.His previous tax measure demonstrated how targeted tax changes can have a rapid impact on supply by aiming to build one million affordable rental units.

The Logic Behind the Plan Who It s Supposed to Help

The housing market is stalled, let’s face it.

There are too many buyers, too few homes, and not enough long-term homeowners moving. You’re not the only one who has wondered, “Where are all the listings?”

The reasoning behind the plan is as follows:

If selling their properties will result in a large tax burden, many are reluctant to do so. So they wait. Because there will be less supply, prices will rise even further.

According to a research, the country is lacking 4.7 million dwellings. That is a huge disparity.

According to MTG, her measure would clear that stock. Trump claims that reduced rates and tax elimination would encourage individuals to relocate.

On paper, it makes logical. You may finally take the action you’ve been putting off if selling doesn’t result in a tax penalty.

But is that all there is to it?

Recently, I came upon a WhatsApp group devoted to U.S. real estate changes where a few housing observers shared real-time updates and live policy comments. It might be worth looking into if you enjoy staying on top of trends without having to go through the headlines.

What the Experts Are Saying And What Could Actually Happen

This is where things start to get difficult.

Not everyone believes that this idea will succeed or even function as advertised.

A senior fellow expressed skepticism that the government would completely do away with the tax. Which is most likely? Instead of completely eliminating the tax, they will increase the current exemption.

And that could still be beneficial.

One in three homeowners have accumulated more equity than the IRS exclusion permits, according to a National Association of Realtors statistic. Therefore, even a little raise in the cap might help millions of people’s tax burdens.

In summary, there is momentum behind the concept, but don’t expect it to pass Congress unaltered.

In your opinion, should the capital gains tax on property sales be raised or completely abolished? This is worth a serious conversation, so please share your ideas in the comments section below.

Can This Really Unleash the Housing Market?

Let’s discuss the results. Would the housing market genuinely be affected if this bill passed exactly as written?

It may. Some long-time owners might be inspired to list and move if the tax is removed. In particular, boomers who feel stuck while sitting on a lot of equity.

There is another side, though.

Critics say it might benefit the wealthy the most those who already made big gains. And if a flood of sellers enter the market, investors might swoop in first, not everyday buyers like you or me.

Also this plan doesn t make homes more affordable. It might increase listings, but with rates still high, that doesn t mean prices will drop.

Trump also blamed the Fed, not just taxes. He pointed to Europe cutting rates while the U.S. held steady at 4.25% 4.50%, saying that if rates were lower, this housing bottleneck wouldn t exist.

And even Jerome Powell acknowledged the issue last year. In a Federal Reserve speech, he admitted the market was in part frozen, with many owners unwilling to give up their low-rate mortgages.

So yes, the tax plan could help. But interest rates, inventory, and buyer affordability are all part of this bigger puzzle.

States like New Hampshire are already stepping uprecent housing reforms there aim to expand affordable options at the local level, which could complement or compete with what s happening federally.

What Trump Wants the Fed to Do And Why It Matters

Trump didn t stop at taxes. He also took aim at something even bigger interest rates.

In his usual blunt style, he blamed the Federal Reserve and specifically Jerome Powell for keeping rates too high for too long. According to Trump, if the Fed had dropped rates earlier like Europe did we wouldn t even need a housing tax cut. Buyers would be flooding back on their own.

You ve probably felt this yourself. Maybe you looked at mortgage rates and thought, I ll wait it out. Or maybe you ve got a great locked-in rate and can t justify giving it up to move.

That s what Trump is tapping into. He s saying the Fed has frozen the market by keeping borrowing expensive. And he s not entirely wrong even Powell has admitted that many sellers are stuck because moving would mean jumping from a 3% mortgage to 7%.

So in Trump s mind, the fix isn t just about taxes. It s about pressure on the Fed, on Powell, and on anything standing in the way of cheaper borrowing.

Where the Plan Falls Short Key Gaps & Unanswered Questions

Here s where I want to level with you this plan, as big as it sounds, leaves a lot of stuff out.

It doesn t say anything about renters. Nothing about zoning reform. Nothing about incentives for builders to actually create more affordable housing. And it sure doesn t touch the mortgage interest deduction, which also shapes how people buy and sell.

Another issue? It assumes that people aren t selling only because of taxes. But that s not always the case. Some families just can t afford to move. Others live in places where even downsizing costs more than staying put.

And if the bill passes as-is, who does it benefit most? The people with the biggest gains long-time owners in high-growth areas. Not the first-time buyer in a starter home. Not the renter trying to break into the market.

It s a bold idea. But it s not a full solution.

And beyond taxes or rates, homeowners face small daily hurdles toolike unfair HOA fines and rules most people don t even know they can challenge.

Real People, Real Impact Who Gains Most from This Plan?

Let s break it down simply if this bill passed, who wins?

People who ve owned their homes for a long time, in places where prices exploded. Think early buyers in cities like Austin, Phoenix, Tampa, or parts of California. They ve got hundreds of thousands in equity. For them, scrapping the capital gains tax is a huge win.

Younger homeowners? Maybe. But only if their home value has risen more than the current exemption allows and even then, it depends on their income bracket and timing.

Renters? Not much changes for them. This bill won t lower home prices, increase wages, or expand credit access.

In short, the biggest impact would be for the already-wealthy or those who got in early. If that s not you, this might feel more like background noise than real relief.

Alternatives to Homeownership What You Can Do Instead

If you re watching all this thinking, Great, but I still can t afford a house, you re not alone. And honestly, that frustration is valid.

Homeownership feels out of reach for a lot of people right now. But that doesn t mean you have to sit on the sidelines completely.

There are other ways to build equity or invest in real estate without buying a whole house. Some people are looking at shared ownership models. Others are turning to passive income options like real estate funds, rental partnerships, or REITs.

And if you re saving, improving your credit, or waiting for rates to drop that s a strategy too. Sometimes the smartest move is patience with purpose.

You don t need to own a home this year to win long-term. But you do need a plan.

What Happens Next? Political Reality Check

Let s not get carried away this bill isn t law yet. Not even close.

It still has to go through committees, debates, votes and it will face real opposition in Congress. Some lawmakers will see it as a tax break for the rich. Others might worry about what it does to the federal budget. And with an election on the horizon, everything becomes a campaign move.

The more likely outcome? A compromise. Maybe they ll raise the capital gains exemption instead of cutting the tax entirely. That would still help especially for middle-class homeowners who ve seen big gains but aren t ultra-wealthy.

Keep an eye on this. It s moving fast. But until there s a vote it s just potential.

Should You Be Excited or Cautious?

If you re a homeowner with serious equity this plan could be a game-changer. You might finally be able to sell without the IRS taking a big cut. That s real money.

But if you re on the outside looking in, the benefits aren t so clear. It won t drop home prices. It won t lower rates. And it probably won t help you buy anytime soon.

So should you be excited? Maybe. Should you get your hopes up? Not yet.

What you should do is stay informed. Keep watching what Trump says, what the Fed does, and what bills actually move forward. And no matter where you stand in the housing market renter, owner, investor have a game plan for what s next.

Want to stay ahead on major shifts in housing policy and real estate trends? Visit ourGovernment & Policy sectionfor more expert-backed coverage.

Disclaimer:This article is for informational purposes only and does not constitute financial, legal, or tax advice. Always consult with a certified professional before making decisions related to real estate or taxes. Policies mentioned may change or not be enacted.

Table of Contents

• Trump Aligns with MTG s Effort to Reform America s Real Estate Rules

  • What Exactly Is Trump Proposing on Capital Gains Tax?

  • MTG s No Tax on Home Sales Act And Why Trump s Backing It Matters

  • The Logic Behind the Plan Who It s Supposed to Help

  • What the Experts Are Saying And What Could Actually Happen

  • Can This Really Unleash the Housing Market?

  • What Trump Wants the Fed to Do And Why It Matters

  • Where the Plan Falls Short Key Gaps & Unanswered Questions

  • Real People, Real Impact Who Gains Most from This Plan?

  • Alternatives to Homeownership What You Can Do Instead

  • What Happens Next? Political Reality Check

  • Should You Be Excited or Cautious?

• What Exactly Is Trump Proposing on Capital Gains Tax?

• MTG s No Tax on Home Sales Act And Why Trump s Backing It Matters

• The Logic Behind the Plan Who It s Supposed to Help

• What the Experts Are Saying And What Could Actually Happen

• Can This Really Unleash the Housing Market?

• What Trump Wants the Fed to Do And Why It Matters

• Where the Plan Falls Short Key Gaps & Unanswered Questions

• Real People, Real Impact Who Gains Most from This Plan?

• Alternatives to Homeownership What You Can Do Instead

• What Happens Next? Political Reality Check

• Should You Be Excited or Cautious?