Cammack to Introduce Bill Creating Tax-Free Savings Accounts for First-Time Homebuyers

In recent years, homeownership and affordability have been issues for much of America. Representative Kat Cammack (R-FL) has sought to address these issues by introducing a bill creating tax-free savings accounts for first-time homebuyers.

The Next-Generation Equity Savings Tool (NEST) Act specifically prevents funds withdrawn from a savings account from being taxed if used toward the down payment or closing costs of the account owner's first home purchase.

Rep. Cammack said in her press release that the bill "would assist first-time homebuyers in overcoming financial barriers, especially the challenges related to down payments and closing costs. Individuals and families could save money on a pre-tax basis, with no tax upon withdrawal, if the funds are used to purchase a first home. High home prices in many markets have created barriers for first-time buyers, which is why dedicated savings vehicles for home purchases can assist and encourage those seeking to enter the market and stimulate the economy."

Cutting back on taxes has been a major plank in Republicans' platforms as the November election is just two weeks away. Representative Cory Mills (R-FL) cosponsored a bill in September removing the income tax from Social Security benefits.

Similarly, former President Donald Trump (R) has vowed to make the 2017 tax cuts passed during his first term permanent should he return to the White House and remove income taxes on tips for service industry workers.

Representatives Matt Gaetz (R-FL), Byron Donalds (R-FL), and Senator Rick Scott (R-FL) have introduced legislation removing tips from taxable income over the summer. Rep. Gaetz's bill was introduced in June and cosponsored by Representative Thomas Massie (R-KY).

Sen. Scott teamed up with Senator Ted Cruz (R-TX) to introduce a Senate version that same month, while Rep. Donalds' bill was introduced in July.

The Democrats under Vice President Kamala Harris, meanwhile, have proposed $5 trillion in tax hikes, raising rates on businesses, corporations, and capital gains, including a potentially unconstitutional "unrealized gains" tax.

Representative Mike Waltz (R-FL) blasted these proposals during a Fox Business appearance in August, calling them "Soviet-style, top-down overreach."