Two older homeowners told BI they want to downsize, but have been discouraged by the tax. The tax may be discouraging empty nesters from selling their larger homes to growing families, worsening a shortage of starter homes. While they've benefited from their soaring home equity, selling at that price or higher would come with an extra large tax bill. The More Homes on the Market Act is designed to incentivize more homeowners to sell and boost the housing inventory. Related stories"I firmly believe that such a simple, straightforward fix would allow homeowners to downsize, sell their homes, and secure their nest-eggs," Panetta said in a statement to BI.

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Persons: it's, CoreLogic, Selma Hepp, David Levin, Levin, they've, Levin doesn't, we're, It's, Mario Tama, Jimmy Panetta, Panetta, Hepp, Andrea S Organizations: Social, Getty, Democratic, Business Locations: downsize, Manhattan Beach , California, Manhattan Beach, Washington, California, Los Angeles, Sherman Oaks