The National Association of Home Builders, after learning that a “homeownership” tax credit it had wanted will not be in an initial version of the bill, is preparing a nationwide campaign against it. The development underscored just how difficult the prospect of a successful tax overhaul will be, given the complex and competing interests that President Trump and GOP lawmakers are trying to serve.
“We will do everything we can to defeat this thing,” said Jerry Howard, chief executive of the National Association of Home Builders.
.. Much of the pressure, and spotlight, will fall on Brady.
.. Ryan and Brady had been hoping to stave off corporate defections as long as possible, arguing that the plan’s benefits to the economy would outweigh the loss of any industry-specific tax break.
.. Home builders are considered among the most politically influential groups, as they play a large role in the local economy for virtually every congressional district — and contribute millions to political campaigns.
.. Howard and Brady’s aides spent weeks working together to add to the bill a “homeownership tax credit,” which essentially would have replaced the mortgage-interest and property-tax deductions, combining both benefits into a new tax credit.
.. he feared that other changes could tip the housing industry into a recession. He was particularly concerned about ideas to eliminate the federal deduction for state and local taxes and doubling the standard deduction, which could remove incentives for all but the “very wealthy” to deduct their mortgage interest — and have a chilling effect on homeownership.
.. federal government would gain revenue in the short term as a greater portion of initial savings is taxed — but lose revenue in the long term.
.. On Saturday, Brady gave ground on the planned elimination of the federal income tax deduction for state and local taxes — a provision that had put Republican House members from New York, New Jersey, California and other high-tax states on edge — agreeing to maintain a deduction for property taxes but not for income or sales taxes.
.. He has been a relentless advocate for “pro-growth” measures — which largely refer to business provisions meant to goose investment.
..
The idea seemed “brilliant,” in Schweikert’s recollection. But then Brady started asking questions. And not long afterward, Schweikert withdrew his idea and the debate quickly moved along. Thanks to Brady’s soft touch, he said, he understood the decision.
“I don’t know of many members here who could handle the ideological or even the temperamental range that’s in the room,” Schweikert said. “Instead of saying, ‘That’s a dumb idea,’ or, ‘No, I’ve got to get you back over here,’ it’s, ‘Let’s walk through that. How would that work? How would you enforce that?’ ”