Cuts to homeowner tax breaks could cost Republicans in 2018 races SACRAMENTO, Calif. (Reuters) - Laura Russo is just the kind of voter the Republicans need, but the party’s proposed tax overhaul, which includes limits on the deductions for mortgage interest, state taxes and property taxes, is pushing her away.  “I would be dramatically affected,” she said. An airline pilot and single mother of two, she says that like many in her affluent Loudoun County, Virginia, neighborhood she stretched to buy her home. She fears it will become harder to sell that house or pay her other tax bills if President Donald Trump signs the plan into law.  Russo, 52, said she had voted for the Republican in every presidential race since 1992 until last year when she picked Hillary Clinton. She still voted for Barbara Comstock, the Republican who represents her district in Congress.  “I will not do that again,” she said. “The tax bill is the straw that broke the camel’s back.”  Russo is one of thousands of homeowners in Republican-leaning areas who could be hit by the elimination or reduction of tax breaks for homeowners, a Reuters analysis of federal mortgage and tax data shows, potentially opening those districts to a Democratic challenge in the November 2018 mid-term elections.  The plans are expected to affect mainly the Democratic-leaning “blue states” such as California, New Jersey and New York where homes are expensive, mortgages are huge and state and local taxes tend to be high.  But while these blue states will be hardest hit, county level data also shows there is a significant number of Republican enclaves in districts expected to be hotly contested in next year's polls that will feel the pain. Republican leaning pockets in blue or swing states, such as Orange County, California, or Loudoun County, Virginia, tend to have high property values – and thus the higher mortgages. Many of these areas also tend to have higher state and local income taxes.   Larry Sabato, director of the non-partisan Center for Politics at the University of Virginia, estimates that there are 16 counties where 2018 races will be toss-ups between Republican incumbents and Democratic challengers.  Reuters data shows that almost half of those counties have an above-average share of new mortgages worth more than $500,000, which is a proposed cap for tax deductions. The results are similar for districts selected as 50-50 ones by The Cook Political Report, a non-partisan newsletter that analyzes U.S. elections.  Among those on Cook’s list is a district in Harris County in the deep-red state of Texas. Even though the state has no income tax, thousands of residents of the district, which includes Houston, deduct taxes owed in other states because of work or business done there, and property taxes - the nation’s sixth-highest.  Democrats need 24 more seats to win lower house majority from the Republicans, who now control the White House and both houses of Congress. Nancy Pelosi, the House Minority Leader, said in a fundraising note Democrats were rushing out “rapid-response ads” targeting swing voters to capitalize on the concerns, while Kevin Brady, Republican chairman of the House Ways and Means Committee, said on CNBC on Tuesday his party’s leadership was working on ways to mollify Republicans in blue states.  That concern is felt on the ground too. Will Estrada, chairman of the Republican party in Loudoun County, said he firmly believed the tax plan would deliver savings to most people. But he said that if Democrats are right and many middle class voters face higher bills, “the GOP is going to be toast in 2018.”  The bill passed by the U.S. House of Representatives on Nov. 16 let homeowners who take out new mortgages deduct only the interest paid on the first $500,000 of a mortgage. It also ends deductions for state and local income taxes, and caps deductions for property taxes at $10,000.  The Senate’s plan, passed on Saturday, would keep the mortgage interest deduction as is, on any mortgage up to $1 million, but agrees with the House on state, local and property taxes. The two houses of Congress are now reconciling the two versions.  The Reuters data analysis shows that 37 percent of the total mortgages issued in Orange County in 2016 were above $500,000 and 26 percent in Loudon County. Both include districts represented by Republicans and have some of the highest rates of expensive mortgages in the country.  Comstock, who retained her Virginia seat by 3 percentage points, voted for the House bill, but later asked for changes on deductions, saying through a spokesman that she sought “the best possible tax package for all of her constituents.” In Orange County, Republican Representative Darrel Issa voted against the House version, in part, because of how it will affect homeowners. Neither California Republican Dana Rohrabacher, who also voted against the bill, nor Issa would comment on a possible backlash from voters.  Home buyers in expensive areas count on the mortgage interest deduction to make their payments manageable, said Lawrence Yun, chief economist for the National Association of Realtors, which opposes any changes to the deductions.  Yun says his analysis suggests curbing the mortgage interest deduction would lead to as much as an 8 percent drop in housing values nationwide, and cutting property tax deductions could lead to a further drop of up to 3 percent because it would make buying and selling homes more costly.  “Not just in high cost states like Illinois and California, but relatively speaking in places like Wisconsin, Michigan, Pennsylvania, which were critical in swaying the presidential election,” he said.  Other economists think the impact may be smaller. As refinancing of mortgages becomes less popular and consumers begin paying debt down faster, the market would rebalance, said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California, who forecasts a 5 percent decline in home values.  California’s Placer County northeast of Sacramento, where the median home sells for more than $440,000, remains a Republican enclave. But local Republicans have noticed that each year fewer residents vote Republican and their web page bears the slogan, “Keep Placer Red.”  To do that, the party will have to keep the loyalty of Republicans like Rudy Coscia, a 36-year-old plastic surgeon who just took out a $900,000 mortgage to buy a four-bedroom house in Granite Bay for $1.1 million.  Coscia is counting on mortgage interest and property tax deductions as he is also making payments on $200,000 worth of medical school loans and $400,000 he borrowed to get his practice started.  “They’re hurting their base,” he said. “You’d think they’d be trying not to hurt the people who voted for them.”  politicsNews
cuts homeowner tax breaks could cost republicans races sacramento reuters laura russo kind voter republicans need party proposed tax overhaul includes limits deductions mortgage interest state taxes property taxes pushing away i would dramatically affected said an airline pilot single mother two says like many affluent london county virginia neighborhood stretched buy home she fears become harder sell house pay tax bills president donald trump signs plan law russo said voted republican every presidential race since last year picked hillary clinton she still voted barbara comstock republican represents district congress i said the tax bill straw broke camel russo one thousands homeowners areas could hit elimination reduction tax breaks homeowners reuters analysis federal mortgage tax data shows potentially opening districts democratic challenge november elections the plans expected affect mainly blue states california new jersey new york homes expensive mortgages huge state local taxes tend high but blue states hardest hit county level data also shows significant number republican enclaves districts expected hotly contested next year polls feel pain republican leaning pockets blue swing states orange county california london county virginia tend high property values thus higher mortgages many areas also tend higher state local income taxes larry sabah director center politics university virginia estimates counties races republican incumbents democratic challengers reuters data shows almost half counties share new mortgages worth proposed cap tax deductions the results similar districts selected ones the cook political report newsletter analyzes elections among cook list district harris county state texas even though state income tax thousands residents district includes houston deduce taxes owed states work business done property taxes nation democrats need seats win lower house majority republicans control white house houses congress nancy pesos house minority leader said fundraising note democrats rushing ads targeting swing voters capitalize concerns kevin brady republican chairman house ways means committee said cnbc tuesday party leadership working ways modify republicans blue states that concern felt ground will strata chairman republican party london county said firmly believed tax plan would deliver savings people but said democrats right many middle class voters face higher bills gop going toast the bill passed house representatives let homeowners take new mortgages deduce interest paid first mortgage it also ends deductions state local income taxes caps deductions property taxes the senate plan passed saturday would keep mortgage interest deduction mortgage million agrees house state local property taxes the two houses congress reconciling two versions the reuters data analysis shows percent total mortgages issued orange county percent london county both include districts represented republicans highest rates expensive mortgages country comstock retained virginia seat percentage points voted house bill later asked changes deductions saying spokesman sought best possible tax package in orange county republican representative barrel issn voted house version part affect homeowners neither california republican dana rohrabacher also voted bill issn would comment possible backlash voters home buyers expensive areas count mortgage interest deduction make payments manageable said lawrence yun chief economist national association reactors opposes changes deductions yun says analysis suggests curling mortgage interest deduction would lead much percent drop housing values nationwide cutting property tax deductions could lead drop percent would make buying selling homes costly not high cost states like illinois california relatively speaking places like wisconsin michigan pennsylvania critical saying presidential election said other economists think impact may smaller as financing mortgages becomes less popular consumers begin paying debt faster market would balance said richard green director luck center real estate university southern california forecasts percent decline home values california place county northeast sacramento median home sells remains republican enclave but local republicans noticed year fewer residents vote republican web page bears slogan keep place to party keep loyalty republicans like rude costa plastic surgeon took mortgage buy house granite bay million costa counting mortgage interest property tax deductions also making payments worth medical school loans borrowed get practice started they hurting base said you think trying hurt people voted politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Cuts to homeowner tax breaks could cost Republicans in 2018 races SACRAMENTO, Calif. (Reuters) - Laura Russo is just the kind of voter the Republicans need, but the party’s proposed tax overhaul, which includes limits on the deductions for mortgage interest, state taxes and property taxes, is pushing her away.  “I would be dramatically affected,” she said. An airline pilot and single mother of two, she says that like many in her affluent Loudoun County, Virginia, neighborhood she stretched to buy her home. She fears it will become harder to sell that house or pay her other tax bills if President Donald Trump signs the plan into law.  Russo, 52, said she had voted for the Republican in every presidential race since 1992 until last year when she picked Hillary Clinton. She still voted for Barbara Comstock, the Republican who represents her district in Congress.  “I will not do that again,” she said. “The tax bill is the straw that broke the camel’s back.”  Russo is one of thousands of homeowners in Republican-leaning areas who could be hit by the elimination or reduction of tax breaks for homeowners, a Reuters analysis of federal mortgage and tax data shows, potentially opening those districts to a Democratic challenge in the November 2018 mid-term elections.  The plans are expected to affect mainly the Democratic-leaning “blue states” such as California, New Jersey and New York where homes are expensive, mortgages are huge and state and local taxes tend to be high.  But while these blue states will be hardest hit, county level data also shows there is a significant number of Republican enclaves in districts expected to be hotly contested in next year's polls that will feel the pain. Republican leaning pockets in blue or swing states, such as Orange County, California, or Loudoun County, Virginia, tend to have high property values – and thus the higher mortgages. Many of these areas also tend to have higher state and local income taxes.   Larry Sabato, director of the non-partisan Center for Politics at the University of Virginia, estimates that there are 16 counties where 2018 races will be toss-ups between Republican incumbents and Democratic challengers.  Reuters data shows that almost half of those counties have an above-average share of new mortgages worth more than $500,000, which is a proposed cap for tax deductions. The results are similar for districts selected as 50-50 ones by The Cook Political Report, a non-partisan newsletter that analyzes U.S. elections.  Among those on Cook’s list is a district in Harris County in the deep-red state of Texas. Even though the state has no income tax, thousands of residents of the district, which includes Houston, deduct taxes owed in other states because of work or business done there, and property taxes - the nation’s sixth-highest.  Democrats need 24 more seats to win lower house majority from the Republicans, who now control the White House and both houses of Congress. Nancy Pelosi, the House Minority Leader, said in a fundraising note Democrats were rushing out “rapid-response ads” targeting swing voters to capitalize on the concerns, while Kevin Brady, Republican chairman of the House Ways and Means Committee, said on CNBC on Tuesday his party’s leadership was working on ways to mollify Republicans in blue states.  That concern is felt on the ground too. Will Estrada, chairman of the Republican party in Loudoun County, said he firmly believed the tax plan would deliver savings to most people. But he said that if Democrats are right and many middle class voters face higher bills, “the GOP is going to be toast in 2018.”  The bill passed by the U.S. House of Representatives on Nov. 16 let homeowners who take out new mortgages deduct only the interest paid on the first $500,000 of a mortgage. It also ends deductions for state and local income taxes, and caps deductions for property taxes at $10,000.  The Senate’s plan, passed on Saturday, would keep the mortgage interest deduction as is, on any mortgage up to $1 million, but agrees with the House on state, local and property taxes. The two houses of Congress are now reconciling the two versions.  The Reuters data analysis shows that 37 percent of the total mortgages issued in Orange County in 2016 were above $500,000 and 26 percent in Loudon County. Both include districts represented by Republicans and have some of the highest rates of expensive mortgages in the country.  Comstock, who retained her Virginia seat by 3 percentage points, voted for the House bill, but later asked for changes on deductions, saying through a spokesman that she sought “the best possible tax package for all of her constituents.” In Orange County, Republican Representative Darrel Issa voted against the House version, in part, because of how it will affect homeowners. Neither California Republican Dana Rohrabacher, who also voted against the bill, nor Issa would comment on a possible backlash from voters.  Home buyers in expensive areas count on the mortgage interest deduction to make their payments manageable, said Lawrence Yun, chief economist for the National Association of Realtors, which opposes any changes to the deductions.  Yun says his analysis suggests curbing the mortgage interest deduction would lead to as much as an 8 percent drop in housing values nationwide, and cutting property tax deductions could lead to a further drop of up to 3 percent because it would make buying and selling homes more costly.  “Not just in high cost states like Illinois and California, but relatively speaking in places like Wisconsin, Michigan, Pennsylvania, which were critical in swaying the presidential election,” he said.  Other economists think the impact may be smaller. As refinancing of mortgages becomes less popular and consumers begin paying debt down faster, the market would rebalance, said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California, who forecasts a 5 percent decline in home values.  California’s Placer County northeast of Sacramento, where the median home sells for more than $440,000, remains a Republican enclave. But local Republicans have noticed that each year fewer residents vote Republican and their web page bears the slogan, “Keep Placer Red.”  To do that, the party will have to keep the loyalty of Republicans like Rudy Coscia, a 36-year-old plastic surgeon who just took out a $900,000 mortgage to buy a four-bedroom house in Granite Bay for $1.1 million.  Coscia is counting on mortgage interest and property tax deductions as he is also making payments on $200,000 worth of medical school loans and $400,000 he borrowed to get his practice started.  “They’re hurting their base,” he said. “You’d think they’d be trying not to hurt the people who voted for them.”  politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: cuts homeowner tax breaks could cost republicans races sacramento reuters laura russo kind voter republicans need party proposed tax overhaul includes limits deductions mortgage interest state taxes property taxes pushing away i would dramatically affected said an airline pilot single mother two says like many affluent london county virginia neighborhood stretched buy home she fears become harder sell house pay tax bills president donald trump signs plan law russo said voted republican every presidential race since last year picked hillary clinton she still voted barbara comstock republican represents district congress i said the tax bill straw broke camel russo one thousands homeowners areas could hit elimination reduction tax breaks homeowners reuters analysis federal mortgage tax data shows potentially opening districts democratic challenge november elections the plans expected affect mainly blue states california new jersey new york homes expensive mortgages huge state local taxes tend high but blue states hardest hit county level data also shows significant number republican enclaves districts expected hotly contested next year polls feel pain republican leaning pockets blue swing states orange county california london county virginia tend high property values thus higher mortgages many areas also tend higher state local income taxes larry sabah director center politics university virginia estimates counties races republican incumbents democratic challengers reuters data shows almost half counties share new mortgages worth proposed cap tax deductions the results similar districts selected ones the cook political report newsletter analyzes elections among cook list district harris county state texas even though state income tax thousands residents district includes houston deduce taxes owed states work business done property taxes nation democrats need seats win lower house majority republicans control white house houses congress nancy pesos house minority leader said fundraising note democrats rushing ads targeting swing voters capitalize concerns kevin brady republican chairman house ways means committee said cnbc tuesday party leadership working ways modify republicans blue states that concern felt ground will strata chairman republican party london county said firmly believed tax plan would deliver savings people but said democrats right many middle class voters face higher bills gop going toast the bill passed house representatives let homeowners take new mortgages deduce interest paid first mortgage it also ends deductions state local income taxes caps deductions property taxes the senate plan passed saturday would keep mortgage interest deduction mortgage million agrees house state local property taxes the two houses congress reconciling two versions the reuters data analysis shows percent total mortgages issued orange county percent london county both include districts represented republicans highest rates expensive mortgages country comstock retained virginia seat percentage points voted house bill later asked changes deductions saying spokesman sought best possible tax package in orange county republican representative barrel issn voted house version part affect homeowners neither california republican dana rohrabacher also voted bill issn would comment possible backlash voters home buyers expensive areas count mortgage interest deduction make payments manageable said lawrence yun chief economist national association reactors opposes changes deductions yun says analysis suggests curling mortgage interest deduction would lead much percent drop housing values nationwide cutting property tax deductions could lead drop percent would make buying selling homes costly not high cost states like illinois california relatively speaking places like wisconsin michigan pennsylvania critical saying presidential election said other economists think impact may smaller as financing mortgages becomes less popular consumers begin paying debt faster market would balance said richard green director luck center real estate university southern california forecasts percent decline home values california place county northeast sacramento median home sells remains republican enclave but local republicans noticed year fewer residents vote republican web page bears slogan keep place to party keep loyalty republicans like rude costa plastic surgeon took mortgage buy house granite bay million costa counting mortgage interest property tax deductions also making payments worth medical school loans borrowed get practice started they hurting base said you think trying hurt people voted politicsnews