While many residents across King County are struggling to provide for their families this holiday season the Trump administration and Congress have yet again made life harder for the average King County resident.
“While many King County residents are still trying to recover from an economic collapse, Washington D.C. has yet again made life harder,” said King County Assessor John Wilson in a news release Thursday. “Middle class and lower income families are going to pay the price for the wealthy and big businesses to receive a tax break. This shortsighted policy is bad for the United States and it’s bad for King County.”
Wilson said the tax bill will:
• Reduce the mortgage interest deduction
• Eliminates the deduction for interest on home equity loans
• Limits property tax deduction
New homebuyers will now only be eligible to deduct interest on the first $750,000 of mortgage debt on a new home, Wilson said. While this may seem like a high number, prices in King County continue to skyrocket with growth expected to continue into 2018. Additionally, the tax bill eliminates deductions for interest on home equity loans. Given the downturn in the economic climate many homeowners in King County turn to equity loans to fund basic needs.
Most importantly, the tax bill further burdens homeowners by only allowing them to deduct $10,000 in property taxes. With market conditions continuing to accelerate there are many homes in King County that receive a property tax bill larger than $10,000. Many of these individuals are senior citizens who have lived in their homes for decades all across the county.
“The Trump administration and Congress have now made it even harder for fixed income senior citizens to stay in their homes,” Wilson said. “Every day senior citizens are choosing between their medications and a growing property tax bill. This legislation will cause many of those seniors on the edge to finally lose the house they have made their home for decades.
“Further, this new law will make it even harder for first time homebuyers to call King County home. Most middle class families will end up paying much more than any tax benefit they receive and frankly it is sad to see a budget balanced on the backs of working folks while the wealthiest get yet another handout. This is a rip-off for King County. I will go back to Olympia this legislative session to work with the legislature to provide meaningful tax relief for those who need it across King County.”