Trump tax overhaul under fire

Trump tax overhaul under fire
US President Donald Trump’s plans to overhaul the tax system is facing growing opposition from select interest groups, and criticism from some Republicans.

Concerns are being raised at a time when Congress is finalising the sweeping legislation seeking to eliminate some of the most popular tax breaks to help pay for lower taxes.

Republicans will be unveiling their legislation for tax cuts on Wednesday.

The change for home mortgage deductions has riled the National Association of Home Builders, which boasts 130,000 member firms employing 9 million workers.

Claiming the legislation will reduce the value of mortgage interest deductions as an incentive for buying homes, the NAHB has vowed to defeat it.

“We’re opposed to the tax bill without the tax credit in there, and we’ll be working very aggressively to see it defeated,” NAHB chief executive Jerry Howard told Reuters.

Other changes include the proposal that stops the federal deduction for state and local taxes (SALT).

Analysts say that will hit upper middle-class families in high income tax states such as New York, New Jersey and California.

NAHB will be one of many lobby groups putting pressure on Congress to spare their tax breaks.

“When groups start rallying against things and they succeed, everything starts unravelling,” Senator Bob Corker, a leading Republican told CBS’ Face the Nation.

House and Senate Republicans plan to pass separate tax bills before the US Thanksgiving holiday on November 23, and have a final version on Trump’s desk before January, handing the president his first major legislative victory.

Rank and file House Republicans are also raising concerns about the package delivering up to $6 trillion in tax cuts for businesses and individuals.

“I‘m not going to sign onto anything until the full package is fully analysed by economists,” New York Congressman Peter King told the Fox News program Sunday Morning Futures.

“The fact that we’re getting it at the eleventh hour raises real issues with me.”


Business First is a peer-to-peer magazine: written by CEOs and other high level executives, with interviews with some of the country’s best leaders.

Leave a Reply

Your email address will not be published. Required fields are marked *