The Trump tax plan doesn’t eliminate the popular mortgage interest deduction – but it includes other changes that might make it irrelevant for many homeowners
The National Association of Home Builders has voiced concern about parts of House Republicans tax plan – specifically, what it perceives as a danger to the mortgage interest deduction.
More than two-thirds of Americans believe that “owning a home is an essential part of the American Dream,” according to the NAHB. The association called the mortgage interest deduction “a key component” in Americans’ ability to become homeowners. The deduction, the NAHB said, “has been a cornerstone of American housing policy since the inception of the tax code more than 100 years ago.”
While the Trump tax plan doesn’t eliminate the mortgage interest deduction, it may render it meaningless for most people, according to a HousingWire report.
The problem is a proposed increase in the standard deduction. For married couples filing jointly, the standard deduction would increase from $12,600 to $24,000. For most couples, that would make the mortgage deduction irrelevant, since the standard deduction would be more beneficial, according to HousingWire.
That doesn’t sit well with the NAHB.
“We must support the dream of homeownership and not create barriers through unnecessary federal regulations or tax code changes,” said NAHB Chairman Granger MacDonald.
More than two-thirds of Americans believe that “owning a home is an essential part of the American Dream,” according to the NAHB. The association called the mortgage interest deduction “a key component” in Americans’ ability to become homeowners. The deduction, the NAHB said, “has been a cornerstone of American housing policy since the inception of the tax code more than 100 years ago.”
While the Trump tax plan doesn’t eliminate the mortgage interest deduction, it may render it meaningless for most people, according to a HousingWire report.
The problem is a proposed increase in the standard deduction. For married couples filing jointly, the standard deduction would increase from $12,600 to $24,000. For most couples, that would make the mortgage deduction irrelevant, since the standard deduction would be more beneficial, according to HousingWire.
That doesn’t sit well with the NAHB.
“We must support the dream of homeownership and not create barriers through unnecessary federal regulations or tax code changes,” said NAHB Chairman Granger MacDonald.
NAHB research indicates that government regulation adds about 24% to the cost of housing. The mortgage deduction, meanwhile, primarily benefits middle-class homebuyers, the NAHB said.
“We have long fought for sensible reforms to burdensome regulations that needlessly increase the cost of homes for low- and middle-income families,” MacDonald said.
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White House unveils Trump tax plan
