Is the sky falling?
Both chambers preserve the mortgage interest deduction, but the House bill caps it at up to $500,000 of principal (current law is a $1 million maximum.)
They also both keep the deduction for charitable contributions, as well as the adoption tax credit, which originally was not included in the House bill, but was part of the amended version that passed.
Second homes are no longer included since this is seen as a deduction taken by the wealthier Americans at the expense of the middle class.
If a person is buying a house over $500,000 then the loss of the ability to deduct the interest on the remaining 100K-500K is not going stop them from buying a home. There is no way this will crush the housing market. Rather the decreased tax burden and improving economy will strengthen the market.
People don’t buy a home to get a tax deduction; they want a place of their own. If you are in the bracket where you are searching for tax deductions and buy a home for this purpose, you are most likely not in the middle class.
One of the biggest symbols of the American Dream is owning your own home and the % able to do so has been dropping like a stone for decades. The mortgage tax deduction didn’t seem to make home ownership possible for most Americans, but a tax rate cut especially for business & middle class will make many more families able to own a home.
I like the way you think. I liked Trump’s original plan better than the one coming out of the congress, but a plan cutting rates, reducing brackets, and generally simplifying the system is a good thing. Especially cutting the corp tax rate. I say we take what we can get while we can get it and put our people back to work as the economy expands.
People should not accept these liberal arguments (ie, arguments the AP/Sacramento Bee, etc) without thinking it through themselves. Doesn’t take a rocket scientist to see that cutting the tax rates and reducing the brackets will result in actual tax cuts for most taxpayers and that the ensuing booming economy will lift the middle class as well as the wealthy.
And most (actual) taxpayers will soon restructure their finances to take advantage of the new plan.
Wage stagnation is what is keeping people from being able to afford a home.
Any raises are immediately lost due to higher health insurance premiums and deductibles.
This bill reduces taxes on corporations ( a good thing), but shifts that tax liability to middle and upper middle class families that were already ACTUALLY paying taxes instead of cutting spending or increasing the tax base to get at the underground economy.
The people writing this bill are greedy crooked degenerate scumbags, this is grand larceny, masquerading as tax cuts.