President Trump Supports New Proposed Capital Gains Bill: It's a ‘Big Positive' for Homeowners

Yahoo

2 days ago

While speaking to reporters at Joint Base Andrews over the weekend, President Trump expressed support for a bill that would eliminate federal capital gains tax for homeowners.
The bill was introduced last week by Republican Congresswoman Marjorie Taylor Greene, who called it a 'gift to the American people.' When asked about the legislation by a reporter after attending the 2025 Club World Cup match in East Rutherford, NJ, Trump agreed that reform was needed.
'We're looking at that,' Trump responded. 'It could be a very big positive. I think it's going to be a great incentive for a lot of people that really need money.'
Dubbed the No Tax on Home Sales Act by Greene, the bill would eliminate the federal capital gains tax on the sale of a primary residence.
Framed as a pro-homeowner reform, the bill aims to boost housing inventory by eliminating what Greene calls one of the biggest deterrents to selling: the fear of losing a large share of profits to the IRS.
'I just think this is a great gift for the American people, and it's very core to what we were founded on,' Greene told Realtor.com® in an exclusive interview.
'[Homeowners] get penalized so much [by capital gains taxes] because of the large amount of equity they've gained,' she says.
Data supports the claim: Roughly 1 in 3 homeowners—nearly 29 million households—in America has built up more equity than the federal capital gains tax exclusion for single filers protects. The reason? The capital gains exclusion—$250,000 for individuals and $500,000 for couples—hasn't changed since 1997. Over that time, home prices have risen more than 260% nationwide, turning what was once a generous buffer into a narrow threshold. As home values continue to climb, more average sellers are finding themselves unexpectedly exposed.
According to a recent analysis by the National Association of Realtors®, by 2030, that number is expected to grow to 56% of homeowners.
Those hit hardest are homeowners who've stayed put the longest—especially in states where property values have surged in recent years.
Hawaii tops the list: Nearly 79% of homeowners could be affected by the $250,000 exclusion limit, with an average capital gain over the threshold of more than $409,000 per household.
Washington follows closely, with nearly 65% of homeowners at risk.
By comparison, West Virginia and Mississippi see the least impact, with less than 8% of homeowners potentially exposed. In Greene's home state of Georgia, just over 31% exceed the limit.
The hope is that the bill will allow millions of longtime homeowners to benefit from their equity—so long as they've actually lived in the home.
'This is not for home flippers. This is for people selling their primary residences … and they will get to keep their money, get to keep their equity,' Greene says.
Trump was also asked about his ongoing criticisms of the Federal Reserve and Chairman Jerome Powell, including whether he believes Powell should step down. He reiterated his disapproval.
'We should have the lowest interest rates on earth, and we don't,' Trump told reporters, before turning his attention to the Fed's $2.5 billion headquarters renovation project.
The central bank appeared to quietly respond shortly after his remarks by updating the 'Frequently Asked Questions' section on its website to defend the decision.
'It involves a complete overhaul and modernization that preserves two historic buildings that have not been comprehensively renovated since their construction in the 1930s,' the Fed wrote.
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