Joined Senator Bayh in Calling for Help for Homeowners
Washington, DC – April 2, 2008 – Senator Hillary Rodham Clinton (D-NY) today hailed approval of meaningful property tax relief for middle class homeowners by the Senate Finance Committee. The proposal, originally introduced by Senator Evan Bayh (D-IN) and supported by Senator Clinton, was included in a package of tax relief measures that will be added to the comprehensive Senate bill to address the housing crisis. The provision would provide relief to millions of homeowners who do not itemize their federal income taxes by allowing them to claim a new standard deduction for their real, state and local property taxes. In November 2007, Senator Clinton joined Senator Bayh and a number of their colleagues in calling for such reforms. Roughly 1.4 million New York tax filers who paid property taxes did not itemize their deductions to account for property taxes in 2005.
“This meaningful property tax relief will help millions of middle class families at a time when so many are struggling to preserve the American dream of homeownership,” Senator Clinton said. “This is a critical step as we work to address the housing crisis.”
Many middle class taxpayers feeling the economic squeeze are struggling with soaring property taxes. Census data shows that from 2000 to 2006, the total amount of state and local property taxes increased by 50 percent, while inflation increased by only 17 percent. Over that same period of time, median household income dropped by 2 percent. Currently, taxpayers who do not itemize their deductions may claim the standard federal tax deduction, but this deduction does not adequately take into account the rising property tax values and increases. A new standard deduction for property taxes would treat itemizers and non-itemizers more equitably, and would provide relief to the more than 32 million homeowners nationwide who do not itemize their deductions.
