One of the problems with the Trump plan is that (if I understand it) mortgage interest will go away. That will cause real estate prices to drop, which in turn will affect the value of a lot of mortgage based securities. Thinking back to 2008, it was doubts about the value of mortgage backed securities that were a big factor in the Great Recession.
from wall street journal, “All taxpayers would keep their current deductions for mortgage-interest on their homes and charitable giving.”
It depends on what happens for interest on rental properties. If they lose deduction also, then the balance is maintained between buying and renting. If renting keeps deduction but buying loses, then renting gains a cost advantage over buying.
FWIW, in an interview yesterday he said that mortgage interest and charitable deductions would stay.
The Trump plan will leave the mortgage deduction as is. He said this morning that it would ruin the housing industry to fool with that deduction. Do not misinform the public if you don’t know the facts.
Losing the mortgage interest deduction won’t change the real estate market. Folks calculating payments almost never factor in a tax deduction for mortgage interest. They figure monthly payments, period.
Trump hasn’t said what he’d do with the Earned Income Tax Credit, etc. That could have a bigger impact.
I think mortgage interest and charitable giving remains as allowed deductions.
Why is it that you would guess whether the mortgage deduction would “go away” Do you not have the ability to use a search engine so you can find his very specific proposal? (https://www.donaldjtrump.com/positions/tax-reform)
If you had taken 10 seconds out of your life, you would then have found the following sentence - “Charitable giving and mortgage interest deductions will remain unchanged for all taxpayers.”
How many places throughout the internet have you posted this ignorant and false “Pearl” of your wisdom?
No, his plan specifically stated keeping the mortgage and charitable giving deductions in place.