Trump Aligns with MTG’s Effort to Reform America’s Real Estate Rules

I’ll be honest — most housing policy news is boring. But this one caught my attention, and probably yours too: Donald Trump wants to eliminate capital gains tax on home sales. That’s a big deal.

The idea came up during a White House Q&A on July 22, when a reporter asked him about scrapping the tax to help “unleash” the housing market. Trump’s response? “We’re thinking about that.” Then he added something even more interesting: if the Federal Reserve just lowered interest rates, they might not need to cut the tax at all.

That one moment set off a chain reaction — media headlines, political reactions, and homeowners across the country asking, “Could this actually happen?”

This isn’t just election-year hype. Trump’s comment directly backs a real bill introduced by Rep. Marjorie Taylor Greene — the No Tax on Home Sales Act.

If you’ve been sitting on home equity and dreading the IRS bill that comes with selling, this story probably feels personal. And you’re not alone.

I’ll break down exactly what Trump and MTG are proposing, why it matters, and what the experts think. But first — what is this tax they’re talking about getting rid of?

What Exactly Is Trump Proposing on Capital Gains Tax?

If you’ve ever thought about selling your home but held back because of the tax hit — you’re not imagining the problem.

Right now, if you sell your primary residence, the IRS lets you exclude up to $250,000 in gains (or $500,000 if you’re married and filing jointly). But if your home has appreciated more than that — which is common these days — you pay capital gains tax on the rest.

This exemption hasn’t been updated since 1997. And with how much home prices have jumped since then, that number feels outdated.

That’s where Trump steps in.

In a July 22 Q&A, when a reporter asked if he’d consider eliminating capital gains tax on home sales to boost supply, he said, “We’re thinking about that.” But he also pointed the finger at the Fed, saying lower interest rates could do just as much, if not more, to “unleash” the housing market.

Yahoo Finance was the first to report the comment, and it quickly picked up traction.

So in plain terms? Trump’s floating a plan to eliminate the capital gains tax on home sales entirely — at least on your primary residence.

And that could change everything.

MTG’s “No Tax on Home Sales Act” — And Why Trump’s Backing It Matters

This isn’t just Trump talking off the cuff.

Just days before his comments, Rep. Marjorie Taylor Greene (MTG) introduced a bill called the No Tax on Home Sales Act. It’s exactly what it sounds like — it would eliminate federal capital gains taxes on the sale of your primary home.

Love or hate her politics — the bill is real. It now has Trump’s name attached, which gives it more weight heading into the 2025 campaign season.

So if you’re sitting on years of equity in your home, this proposal could mean tens of thousands of dollars you’d keep — instead of handing it to the IRS.

In fact, this isn’t the first time Trump has floated a housing-related tax proposal — his earlier tax bill aimed to create one million affordable rentals showed how targeted tax shifts can impact supply fast.

The Logic Behind the Plan — Who It’s Supposed to Help

Let’s be real: the housing market is stuck.

Too few homes, too many buyers, and not enough movement from long-time homeowners. If you’ve thought, “Where are all the listings?”, you’re not alone.

Here’s the logic behind the plan:

People don’t want to sell their homes if it means taking a big tax hit. So they hold on. And that means less supply, which pushes prices even higher.

A study estimates we’re short 4.7 million homes nationwide. That’s a massive gap.

MTG says her bill would free up that inventory. Trump says the tax repeal — along with lower rates — would motivate people to move again.

It makes sense on paper. If selling doesn’t come with a tax penalty, you might finally make that move you’ve been delaying.

But is that the whole story?

I recently saw a few housing watchers share real-time updates and live policy reactions inside a WhatsApp channel dedicated to U.S. real estate shifts. If you like staying ahead of the curve without digging through headlines, it might be worth checking out.

What the Experts Are Saying — And What Could Actually Happen

Now here’s where things get complicated.

Not everyone thinks this plan is going to pass — or even work the way it’s being sold.

A senior fellow told that he doubts the government would scrap the tax entirely. What’s more likely? They’ll raise the existing exemption, not remove the tax altogether.

And that might still help.

A stat from the National Association of Realtors shows that 1 in 3 homeowners have built more equity than the IRS exclusion allows. So even a modest increase in the limit could reduce tax pressure for millions.

Bottom line — the idea has momentum, but don’t expect it to sail through Congress unchanged.

What do you think — should the capital gains tax on home sales be fully eliminated or just raised? Drop your thoughts in the comments below — this one’s worth a real discussion.

Can This Really “Unleash” the Housing Market?

Let’s talk outcomes. If this bill passed exactly as written — would it actually shake up the housing market?

It might. Removing the tax could motivate some long-time owners to finally list and move. Especially boomers sitting on huge equity and feeling stuck.

But there’s another side.

Critics say it might benefit the wealthy the most — those who already made big gains. And if a flood of sellers enter the market, investors might swoop in first, not everyday buyers like you or me.

Also — this plan doesn’t make homes more affordable. It might increase listings, but with rates still high, that doesn’t mean prices will drop.

Trump also blamed the Fed, not just taxes. He pointed to Europe cutting rates while the U.S. held steady at 4.25%–4.50%, saying that if rates were lower, this housing bottleneck wouldn’t exist.

And even Jerome Powell acknowledged the issue last year. In a Federal Reserve speech, he admitted the market was “in part frozen,” with many owners unwilling to give up their low-rate mortgages.

So — yes, the tax plan could help. But interest rates, inventory, and buyer affordability are all part of this bigger puzzle.

States like New Hampshire are already stepping up — recent housing reforms there aim to expand affordable options at the local level, which could complement or compete with what’s happening federally.

What Trump Wants the Fed to Do — And Why It Matters

Trump didn’t stop at taxes. He also took aim at something even bigger — interest rates.

In his usual blunt style, he blamed the Federal Reserve and specifically Jerome Powell for keeping rates too high for too long. According to Trump, if the Fed had dropped rates earlier — like Europe did — we wouldn’t even need a housing tax cut. Buyers would be flooding back on their own.

You’ve probably felt this yourself. Maybe you looked at mortgage rates and thought, “I’ll wait it out.” Or maybe you’ve got a great locked-in rate and can’t justify giving it up to move.

That’s what Trump is tapping into. He’s saying the Fed has frozen the market by keeping borrowing expensive. And he’s not entirely wrong — even Powell has admitted that many sellers are stuck because moving would mean jumping from a 3% mortgage to 7%.

So in Trump’s mind, the fix isn’t just about taxes. It’s about pressure — on the Fed, on Powell, and on anything standing in the way of cheaper borrowing.

Where the Plan Falls Short — Key Gaps & Unanswered Questions

Here’s where I want to level with you — this plan, as big as it sounds, leaves a lot of stuff out.

It doesn’t say anything about renters. Nothing about zoning reform. Nothing about incentives for builders to actually create more affordable housing. And it sure doesn’t touch the mortgage interest deduction, which also shapes how people buy and sell.

Another issue? It assumes that people aren’t selling only because of taxes. But that’s not always the case. Some families just can’t afford to move. Others live in places where even downsizing costs more than staying put.

And if the bill passes as-is, who does it benefit most? The people with the biggest gains — long-time owners in high-growth areas. Not the first-time buyer in a starter home. Not the renter trying to break into the market.

It’s a bold idea. But it’s not a full solution.

And beyond taxes or rates, homeowners face small daily hurdles too — like unfair HOA fines and rules most people don’t even know they can challenge.

Real People, Real Impact — Who Gains Most from This Plan?

Let’s break it down simply — if this bill passed, who wins?

People who’ve owned their homes for a long time, in places where prices exploded. Think early buyers in cities like Austin, Phoenix, Tampa, or parts of California. They’ve got hundreds of thousands in equity. For them, scrapping the capital gains tax is a huge win.

Younger homeowners? Maybe. But only if their home value has risen more than the current exemption allows — and even then, it depends on their income bracket and timing.

Renters? Not much changes for them. This bill won’t lower home prices, increase wages, or expand credit access.

In short, the biggest impact would be for the already-wealthy or those who got in early. If that’s not you, this might feel more like background noise than real relief.

Alternatives to Homeownership — What You Can Do Instead

If you’re watching all this thinking, “Great, but I still can’t afford a house,” — you’re not alone. And honestly, that frustration is valid.

Homeownership feels out of reach for a lot of people right now. But that doesn’t mean you have to sit on the sidelines completely.

There are other ways to build equity or invest in real estate without buying a whole house. Some people are looking at shared ownership models. Others are turning to passive income options like real estate funds, rental partnerships, or REITs.

And if you’re saving, improving your credit, or waiting for rates to drop — that’s a strategy too. Sometimes the smartest move is patience with purpose.

You don’t need to own a home this year to win long-term. But you do need a plan.

What Happens Next? Political Reality Check

Let’s not get carried away — this bill isn’t law yet. Not even close.

It still has to go through committees, debates, votes — and it will face real opposition in Congress. Some lawmakers will see it as a tax break for the rich. Others might worry about what it does to the federal budget. And with an election on the horizon, everything becomes a campaign move.

The more likely outcome? A compromise. Maybe they’ll raise the capital gains exemption instead of cutting the tax entirely. That would still help — especially for middle-class homeowners who’ve seen big gains but aren’t ultra-wealthy.

Keep an eye on this. It’s moving fast. But until there’s a vote — it’s just potential.

Should You Be Excited or Cautious?

If you’re a homeowner with serious equity — this plan could be a game-changer. You might finally be able to sell without the IRS taking a big cut. That’s real money.

But if you’re on the outside looking in, the benefits aren’t so clear. It won’t drop home prices. It won’t lower rates. And it probably won’t help you buy anytime soon.

So should you be excited? Maybe. Should you get your hopes up? Not yet.

What you should do is stay informed. Keep watching what Trump says, what the Fed does, and what bills actually move forward. And no matter where you stand in the housing market — renter, owner, investor — have a game plan for what’s next.

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Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or tax advice. Always consult with a certified professional before making decisions related to real estate or taxes. Policies mentioned may change or not be enacted.