House Republicans have finally released their tax package. But an unusual array of corporate interests — which typically ally with Republicans in major legislative battles — are siding against it in what could be an ominous development.
The prominent naysayers include the National Association of Realtors and the National Federation of Independent Businesses, which immediately said they couldn’t support the overhaul that makes changes to both the individual and corporate side of the tax code. The National Association of Home Builders had already announced it’s opposition and vowed to fight the revamp with its considerable firepower. “We will do everything we can to defeat this thing,” said Jerry Howard, chief executive of the National Association of Home Builders, even before the plan made its debut to House Republicans this morning.
The U.S. Chamber of Commerce praised the release of the bill, but said in a statement that “a lot of work needs to be done.” And The BUILD Coalition — which represents financial services companies, real-estate developers, and farm interests — has come out against the bill’s proposed limitation of the deduction for interest on business debt.
The biggest problem for Republicans appears to be the decision to halve — rather than keep entirely intact — the deduction for mortgage interest. The Tax Cuts and Jobs Act would reduce that deduction to homeowners with $500,000 mortgages instead of the $1 million mortgages that are currently allowed. Property tax deductions would now be capped at $10,000.
Moderate Republicans from high-cost states like New York and New Jersey had fiercely opposed any changes to the state-and-local tax deduction and early reports had thought the final product would potentially eliminate it. But that was not the case, provoking opposition from them as well.
Read more at the Washington Post.