The Real Estate Roundtable has called on Congress to adopt a ‘pro-growth approach to tax restructuring that recognizes commercial real estate's vast economic contributions.’
In a letter to the leadership of the House Ways and Means Committee, Roundtable President and CEO Jeffrey D. DeBoer urged lawmakers not to follow the example of the 1986 Tax Reform Act – which he claimed had a ‘destabilizing effect’ on commercial real estate values, financial institutions and tax bases – and added that Congress needs to recognize the synergy between the commercial property markets and the wider economy.
‘Rational taxation of real estate assets and entities promotes job creation and facilitates sound, environmentally responsible real estate investment and development, which contributes to strong property values and well-served, livable communities,’ DeBoer wrote.
DeBoer added that the commercial real estate industry generates as much as 70% of tax revenue in many local jurisdictions, while more than $300 billion is invested in real estate and real estate-backed investments by tax-exempt organizations, such as pension funds and educational endowments. In upgrading the tax laws, DeBoer advocated a consideration of the private sector's ability to revitalize the economy.
‘The nation's tax laws need to be revamped to unleash entrepreneurship, investment, capital formation and job creation,’ he wrote.