Treasury Secretary Steven Mnuchin called the proposal the “biggest tax cut” in US history. The plan would eliminate many deductions – but is leaving in place the popular mortgage interest deduction.
“NAHB commends President Trump for tackling tax reform and keeping the mortgage interest deduction as one of two individual deductions,” said NAHB Chairman Granger MacDonald. “However, doubling the standard deduction could severely marginalize the mortgage interest deduction, which would reduce housing demand and lead to lower home values.”
Part of Trump’s tax plan includes cutting down the number of tax brackets from seven to three, with rates of 35%, 25% and 10%, and double the standard deduction.
It also aims to abolish the estate tax, establish a “one-time tax” on money held by corporations overseas and to remove tax deductions with some exceptions such as deduction for charitable contributions.
“On the corporate side, NAHB strongly supports the provision to lower the tax rate to 15% for pass-through entities. This would provide much-needed tax relief for America’s small businesses, which generate the lion’s share of job and economic growth,” MacDonald said. “Policymakers also need to take steps to ensure that lower corporate rates do not diminish the effectiveness of the Low Income Housing Tax Credit program, particularly given that the nation is experiencing an acute shortage of affordable housing.
“NAHB looks forward to working with the White House and Congress to craft meaningful tax reform that lowers rates for small business and hard-working families while acknowledging the special role that housing plays to foster economic growth.”
White House unveils Trump tax plan
New homes an important economic driver – NAHB
Days after the Trump administration revealed its tax plan, the National Association of Home Builders (NAHB) issued a statement applauding the president’s proposal.