Rep. Steve Knight’s tax bill vote contributes to housing market stumble

Congressman Steve Knight

The Los Angeles market faced the largest drop in home sales in California.

California’s housing market is slowing down, thanks to Republicans like congressman Steve Knight, who voted for the GOP tax bill last year.

“The California housing market posted its largest year-over-year sales decline since March 2014,” reports the California Association of Realtors (CAR). While home sales are impacted by a number of factors, CAR fingers one of the known culprits: Congressional Republicans like Knight.

“Tax reform, which increases the cost of homeownership, also is contributing to the decline,” CAR president Steve White said in a statement.

September 2018 sales of existing detached, single-family homes is down by more than 12 percent compared to September 2017.

And those¬†most impacted by the slowdown? Residents in in Knight’s own backyard.

“Los Angeles County experienced the largest drop in the region at 22 percent,” says CAR. Nearby Orange County also saw a steep decline, clocking in at 21.8 percent.

Knight currently represents northern Los Angeles county, but he is engaged in a close re-election battle with Democratic nominee Katie Hill. Knight’s vote for the GOP tax bill has become a hot topic in the campaign.

While the bill economically punished middle-class Californians with higher taxes, it showered Wall Street banks with billions of dollars in tax breaks. Wealthy CEOs are lining their own pockets through stock buyback schemes, and company executives are lining up to buy new corporate jets thanks to Republican-backed tax breaks.

One member of Congress, Rep. Vern Buchanan (R-FL) was so excited about his vote for the tax bill that he went out that very day and bought himself a new multi-million dollar yacht.

Working families, on the other hand, have not seen the promised increases in paychecks. And wages, adjusted for inflation, have remained stagnant, or even fell.

To compound the troubles from the new tax bill, now home sales are faltering, and CAR’s chief economist expects the trend to continue downward for the coming months.

Even as the law disproportionately favors the wealthy, Knight has repeatedly defended his stance on the tax bill.

In fact, he has gone so far as to say that he has no regrets about his vote. No regrets at all.