Trump's Tax Plan - Maybe

Donald Trump and his Republican colleagues are still working on their tax plan. It’s expected to bring yuge changes to the housing industry. The details haven’t been released just yet, but lobbyists are expecting what is to come. 

One of the biggest changes to come is expecting the corporate tax rate to drop to 20% from 35%. 

During his campaign Trump promised tax relief for the middle class. In his plan he would be doubling the standard deduction that benefits this class. It would also attempt to pay for some of the tax cuts by eliminating the state and local tax deduction, most commonly used by the middle-to-upper-middle classes of the wealthier states like New York, California, etc. The tax break is worth $1 trillion over 10 years, and it’s supported by some representing the real estate market. 

They are still working on this, as the right wing has not quite figured out which tax deductions to cut in order to simplify the tax code. 

Groups are in the mortgage and housing industries are standing against increasing the standard deduction. They say is a huge threat to the mortgage interest deduction, and would decrease home ownership. 

Steven Mnunchin, the US Secretary of the Department of Treasury said the mortgage interest tax deduction won’t be touched during Trump’s time in office. Even though his administration isn’t eliminating it, doesn’t mean it cannot be altered. 

There’s fears among the professionals in the mortgage industry that changing the mortgage deduction could seriously hurt the ownership rate in America. 

Despite Republicans controlling the House and the Senate, changing these laws can be quite daunting and difficult to accomplish. A bunch of the housing organizations are responding to these proposed law changes. They are all writing letters to lobbyists exposing the detriments that will follow. We will see what is to come in the near future.

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