The plan, put forward by House Ways and Means Committee Chairman Dave Camp (R-Mich.) would eliminate hundreds of credits and deductions, including deductions for child care, medical bills and state and local taxes. Also under the knife would be the current mortgage interest deduction. Under Camp’s plan, the mortgage interest deduction would be available only for mortgages worth less than $500,000, rather than the current $1 million limit. Existing mortgages would be grandfathered in, however.
According to NAR President Steve Brown, slashing the mortgage interest deduction, along with other proposed changes, will negatively impact taxpayers.
“NAR supports reforms that promote economic growth, but we strongly oppose severely altering the rules that govern ownership and investment in real estate,” Brown said. “Real estate powers almost one-fifth of the U.S. economy, employs more than 17 million Americans, and contributes a quarter of all federal and state tax revenue and as much as 70 percent of local taxes.
“We are extremely disappointed with several of the provisions contained in U.S. House Ways and Means Chairman Dave Camp’s tax reform draft released today, namely proposed limits on the mortgage interest deduction and capital gains, and the repeal of deductions for state and local property taxes,” Brown added. “These proposed changes to the taxation of real estate will impact every single American, either directly or indirectly.”
The head of the National Association of Realtors has slammed a GOP tax reform plan that would slash the current mortgage interest deduction.