Biden tax relief proposals…..Tax credit for 1st Time Home Buyers

President Biden will propose a set of new housing initiatives in Thursday’s State of the Union address, including tax credits to offset high mortgage rates for first-time home buyers and encourage people to move out of starter homes and put them on the market.

The proposals would provide middle-class, first-time buyers with $5,000 per year for two years. That would have the same effect aslowering a buyer’s mortgage rate by more than 1.5 percentage points for two years on the median home, according to the White House.

President Biden will call for blocking corporations from deducting the costs of paying salaries over $1 million from their federal taxes in Thursday night’s State of the Union address, part of populist-oriented tax proposals in the speech as the 2024 campaign kicks off in earnest.

In a preview of the president’s remarks, White House National Economic Council Director Lael Brainard said Biden will push more than a half-dozen tax proposals that target billionaires, the rich and large corporations. Biden has already endorsed most of these ideas, while promising to reject any proposals that raise taxes on those earning under $400,000 per year. This year, however, Biden is going further in his calls to tax the wealthy, endorsing a new minimum tax proposal on corporations and a new tax on corporate jet travel.