Rep. Craig Goldman (R-Texas) introduced legislation this week, dubbed the Don't Tax the American Dream Act, that would eliminate federal capital gains taxes on the sale of primary residences.
"Americans are overtaxed. The Don't Tax the American Dream Act repeals costly capital gains taxes on home sales so that Americans keep more of their hard-earned money," Goldman said in a written statement. "Repealing these taxes will unleash the housing market and help restore the American Dream of homeownership."
The bill, introduced on Jan. 13, would allow homeowners to sell their primary residence without paying capital gains taxes, provided they have lived in the property for at least two years.
Last summer, Rep. Marjorie Taylor Greene (R-Ga.) called for an end to capital gains taxes on home sales by introducing her own bill, which has yet to advance out of committee. Her comments were echoed shortly thereafter by President Donald Trump, who said he could support such as measure due to the Federal Reserve’s failure to lower interest rates and address housing affordability.
Goldman's bill also aims to increase the national housing supply, reduce the tax burden on homeowners and improve housing affordability. As of Friday, the bill's full text was not available on the website of Congress.
Tax filers currently can exempt up to $250,000 for individuals or $500,000 for married couples filing jointly from capital gains taxes when selling a primary residence after living in it for at least two years.
But the exemption caps have remained unchanged since 1997 and have not been adjusted to match significant increases in home values, which critics say discourages sales and reduces housing availability.
