Treasury Secretary Steven Mnuchin had earlier made some noises
about eliminating the popular deduction, which allows borrowers to deduct the interest paid on their home loans
from their income tax. However, there was strong pushback from the housing industry, which wanted to keep the deduction right where it was.
Mnuchin and White House economic advisor Gary Cohn outlined the tax plan for reporters, according to CNBC. The plan is largely similar to proposals Trump made as a candidate. According to CNBC, Trump’s plan will:
- Cut the number of tax brackets from seven to three, with rates of 35%, 25% and 10%, and double the standard deduction
- Eliminate tax deductions with only some exceptions, including the mortgage interest deduction and the deduction for charitable contributions
- Institute a “one-time tax” on money held by corporations overseas. However, Mnuchin said the rate for that tax hasn’t been determined, CNBC reported
- Abolish the estate tax
- Repeal the alternative minimum tax and 3.5% Obamacare taxes
Mnuchin would not say whether the tax plan would add to the deficit, CNBC reported.
Mortgage interest deduction may be on Trump’s chopping block
Trade groups urge Congress to renew homeowner tax provisions
The White House has unveiled President Donald Trump’s tax plan, which they said would be the “biggest tax cut” in US history – but it will keep the popular mortgage interest deduction.