Congress has created another fiscal crisis for us, according Mark Dotzour, chief economist and director of research for the Real Estate Center at Texas A&M University, who was interviewed for the July/August Commercial Investment Real Estate magazine podcast. He explained that if Congress doesn’t address the impending capital gains, dividend, estate, and other tax increases, along with the reduced payroll deduction, it could have a 3.5 percent negative impact on economic growth in 2013.
Uncertainty about how this situation will play out could affect the commercial real estate industry before year-end. “I’ve been telling people, ‘Don’t take a vacation until Labor Day,’” Dotzour added. “Because most of the economic activity is going to occur before then.”