EXCLUSIVE: Trump’s home sales cap gains tax cut idea wins immediate support from Rep. Claudia Tenney

President Donald Trump’s push to cut capital gains taxes on home sales is already winning support from Republicans on Capitol Hill, with influential Rep. Claudia Tenney (R., N.Y.) telling the Washington Reporter that she supports the proposal — and that it is a win for her constituents. 

Trump administration officials are considering changes to the capital gains tax on home sales as part of the administration’s broader push to lower housing costs and increase the supply of homes on the market.

Under current law, homeowners can generally exclude $250,000 in gains on the sale of a primary residence, or $500,000 for married couples filing jointly. Those thresholds have not kept pace with the dramatic increase in home values over the past several decades.

Tenney, a member of the powerful House Ways and Means Committee and a longtime Trump ally, told the Reporter exclusively Wednesday that she supports the administration’s effort.

Tenney’s immediate support is consequential because she is considered one of the most influential members of Congress who also serves as a bellwether for Republican policy positions. Tenney is also known for being a leader fighting for lower costs for New York. 

Trump’s proposal could give Republicans another avenue to address affordability, which has become a major economic concern for voters.

Previous polling exclusively reported by the Reporter suggests reforming the tax could be overwhelmingly popular with voters.

An April Reporter exclusive found that 82 percent of likely voters supported indexing the capital gains exclusion on home sales to inflation. The survey, conducted for the American Property Owners Alliance, found support above 80 percent among Republicans, Democrats and independents.

The same poll found 70 percent of voters opposed the existing capital gains tax treatment on home sales, while 74 percent said taxes and regulatory burdens on home sales were limiting housing supply by discouraging homeowners from selling.

At the time, a Senate Republican source familiar with the discussions told the Reporter that Trump had an opportunity for a major political win on affordability.

“There’s almost nothing that gets 82 percent support,” the source said. “Trump has a chance for a huge affordability win by lowering housing costs for millions of Americans.”

The administration’s renewed interest in the issue suggests that idea could now be moving closer to reality.