(Business Insider) Two powerful trade associations slammed the GOP's tax plan on Thursday, saying the reduction of a key benefit for homeowners could hurt the market.
The plan would cap the mortgage-interest deduction — which allows homeowners to subtract interest payments from their taxable income — on new homes at $500,000. This could dampen the benefit of the deduction outside of the most expensive housing markets and may lower home values.
On Sunday, the National Association of Home Builders, a lobbying group based in Washington, DC, said it would not support the legislation. When the full text emerged on Thursday, it amplified its criticism.
Advertisement - story continues below
"The details that are coming out show that the House Republicans are picking large corporations and wealthy Americans over small businesses and middle-class American homeowners," Jerry Howard, the association's CEO, told Business Insider.