(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.
“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.
