US President Donald Trump has reignited market debate by proposing the elimination of capital gains tax on the sale of primary residences, which is expected to boost the country's real estate market.
The proposal was announced during his meeting with Philippine President Bongbong Marcos at the White House, and was described as one of the main strategies to stimulate housing supply and lower current property prices.
Trump said his administration is considering the proposal, but believes that a reduction in interest rates by the Federal Reserve could also have the same effect in reactivating the market.
The proposal also received strong support from his ally, Congresswoman Marjorie Taylor Greene, who is introducing the No Tax on Home Sales Act, a bill that aims to completely eliminate capital gains taxes on the sale of primary homes.
The US real estate market is currently under pressure due to mortgage interest rates rising to around 6 to 7 percent, causing many young people to postpone their desire to buy a home and choose to continue renting.
If the tax is abolished, it is expected to encourage more owners to sell their homes, thus increasing supply in the market and stabilizing prices which are currently at a burdensome level.
