Nashville, TN (PRWEB) November 02, 2012
“The housing market and new construction have led us out of 6 of the last 8 recessions,” Jolly said, “I find it difficult to believe that neither candidate has much to say on the housing recovery.” Neither candidate’s official website has policies or position statements on Real Estate.
Obama and Romney offer vast policy differences concerning the economy, taxes, regulation and business that will directly affect real estate in the short and long term. “Real Estate has a lot riding on this election,” Jolly continued.
The uncertainty in the economy plays a huge role in the housing market. Many businesses are not making decisions on spending and hiring until the election. Uncertainties include the resolution of the fiscal cliff by the end of the year, uncompleted regulations and the roll out of the health care law.
Tax policy is one of the ways the candidates are separating themselves. Obama continues to push for the passing of the Buffet Rule, which raises the capital gains tax to 30% for individuals making more that $1 million annually and eliminating loop holes. Romney plans to reduce tax rates across the board while maintaining the current capital gains tax rate. He also plans to eliminate taxes on interest, dividends and capital gains for those making less than $200,000 per year.
Regulation is another source of division between the candidates. Dodd-Frank is the hallmark of financial reform for Obama. He plans to continue to implement the requirements of this massive law which resulted in a new agency, additional supervision and higher costs to financial institutions. Romney plans to repeal Dodd-Frank and replace it with a stream lined regulatory framework. Romney said that he would push for higher capital and leverage limits while reducing the burden and cost to banks. Both candidates agree with the qualified mortgage provision of the Dodd-Frank law.
Small business loans are another area of contention for the candidates. Obama prefers to lower the lending requirements to allow more businesses to secure guaranteed small business loans. Romney wants to scale back the program to pre-crisis levels to reduce the deficit. Both opponents claim that the other’s plan is not good for the economy.
However, most Americans agree that the election and the resulting policies will have a lasting impact on the real estate market.
For more information, go to NashvilleRealEstateNow.com.