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FIRST ON FOX: Foreign entities have increasingly been acquiring real estate in the United States, even as American citizens face challenges in purchasing properties in their own countries. Rep. Pat Harrigan from North Carolina is responding to this concerning trend by introducing new legislation aimed at addressing it.
The proposed bill, known as the Real Estate Reciprocity Act, seeks to impose a hefty 50% tax on real estate transactions made by foreign nationals and entities with ties to governments that restrict American property ownership. This measure intends to create a more equitable playing field for American citizens.
Under the provisions of the bill, all foreign nationals who buy land in the U.S. would be required to report their purchases to the IRS. Additionally, the secretary of state would be tasked with providing an annual report detailing which foreign countries prevent U.S. citizens from owning real estate within their borders.
Addressing a Growing Concern
“While American families struggle to afford a home, foreign adversaries are buying up our country with cash – farmland, neighborhoods, even land near military bases,” Harrigan stated in an exclusive interview with Fox News Digital. He emphasized the inequity of the situation, where countries with restrictions on American property ownership continue to invest in U.S. land.
Harrigan continued, “My Real Estate Reciprocity Act stops it cold with a 50% tax on every purchase, mandatory disclosure, and protections for the ground we raise our kids on. If Americans can’t buy land in your country, you won’t be able to buy land in ours.”
International Restrictions on Land Purchases
A significant number of nations impose outright bans or strict limitations on foreigners seeking to purchase land. Countries such as Switzerland, New Zealand, Denmark, the Philippines, Poland, and Vietnam have established robust legal frameworks that restrict foreign ownership.
In regions like China and Saudi Arabia, while foreign nationals may invest in real estate, they are prohibited from owning land outright. This situation highlights the selective nature of ownership rights, which has drawn criticism from various stakeholders in the U.S.
Foreign buyers have long faced accusations of acquiring high-end apartments in major urban centers, such as New York City, as a means of parking their assets. This often exacerbates the housing affordability crisis that many American families experience.
Legislative Response to Foreign Investment
Rep. Harrigan’s legislation comes on the heels of a broader movement to counter China’s growing influence over U.S. farmland. As tensions between the two nations escalate, there is an increasing awareness about the implications of foreign ownership of land, especially in close proximity to military facilities.
According to data from the U.S. Department of Agriculture, as of last year, China controlled approximately 350,000 acres of farmland spread across 27 states. This figure has raised alarms among lawmakers concerned about national security and food sovereignty.
As of 2022, foreign entities and individuals owned 43.4 million acres of agricultural land in the United States, accounting for nearly 2% of the nation’s total land area. This statistic is alarming and indicates a growing trend of external investments that could potentially undermine domestic interests.
Canada’s Dominance in U.S. Land Ownership
Data from various sources indicate that Canada has emerged as the largest foreign holder of U.S. land, with ownership extending to 12.8 million acres. This expanse is greater than the combined land area of New Hampshire and Vermont. Such significant foreign investment raises questions about the implications for local economies and national policy.
The discussion surrounding foreign ownership of U.S. real estate is gaining traction as lawmakers and citizens alike voice their concerns. The ongoing housing crisis makes it even more urgent for policy makers to address these complexities in a manner that ensures fair access for all Americans.
A Call for Equitable Policy
The Real Estate Reciprocity Act is part of an ongoing dialogue about how best to protect American interests in the real estate market while ensuring that foreign investments are subject to the same regulations as those imposed on American citizens. Advocates for the bill argue that it aims to protect not only the futures of American families but also the integrity of local communities.
As discussions about this piece of legislation progress, it remains crucial for stakeholders to engage in constructive dialogues about housing affordability and foreign investments. Ensuring that American families have accessible opportunities for homeownership will require thoughtful, coordinated efforts from both government leaders and the community at large.
