Tax reform is creating nightmares for many. There is little knowledge of what types of changes are being made.
Tax breaks and other benefits that have long been enjoyed could be over. The thought of this has trade groups and lobbyist in Washington on edge.
States with high taxes could be impacted. A rise in borrowing costs is expected. The housing market could also suffer as well.
The new tax reform could see a standoff as Congress looks to push the plan.
Steven Mnuchin is the Treasury Secretary. He believes that lobbyist shouldn’t have any input into the matter.
He said “The lobbyists shouldn’t have input, but the people in Congress should have input.” He continued by saying “we’ll be working with them closely as we turn this into a bill and get it to the President to sign this year.”
Fight Is On
Tax reform has always been an issue. It has the ability to affect many Americans, while others are eased.
William E. Brown said “we have always said that tax reform — a worthy endeavor — should first do no harm to homeowners.”
Brown is the President of the National Association of Realtors.
The revelation caused a swift response from the real estate industry. They claim that the changes will cause problems for homeowners.
The change could see less people claiming mortgage deductions. This will also affect those who do tax returns.
Regarding the changes Mac O’Brien said “fortunately, the discussion on tax reform is far from over.”
O’Brien said “altering that would make it more difficult for American companies to compete in the global economy and harm job creation and long-term economic growth.”
Concerns
Concerns are high as many grapple with the possibility of change. Money has always been a touchy issue. That is not about to change.
Trump and the GOP could find themselves facing some tough competition. This decision could turn nasty as it interferes with the lively hood of many.
John J. Faso said “the State and local tax piece is very concerning; because we’re already a donor state to Washington, and this would exacerbate that problem.” Faso is a New York Republican.
He also said “and so I want to see based on income categories. How a hypothetical family of four with a certain amount of income, with an $8,000 property tax and state tax bill, how they are affected?”
Senator Orrin G. Hatch also had some concerns of his own. He said “that’s been a long-heralded and expected set of tax rules, and it’s really, really tough to change that.” Hatch is the Senator for the State of Utah.
“Republicans from high-taxed states are, in our view, unlikely to go along with the elimination of the SALT deduction,” said Brian Gardner.
Gardner is an analyst at the investment banking company Keefe, Bruyette & Woods.
The President probably expected resistance. He has already made inroads with some Democrats as he seeks support.
The tax reform could be in for fight. As time progresses time will tell who will win this one.