AMARILLO, TX (KFDA) - The wealthy, corporations, and some parents will benefit from the GOP tax reform plan, but that may not be the case for real estate agents.
"The realtor organization has come out against the tax reform in its current form," said Owner of Reality Central Cindi Bulla."We have concerns about the long term effects on home ownership. We are concerned that we have had over 100 years of tax incentives built into the tax code, and those incentives have been specifically targeting home ownership."
Under the new bill, homeowners will only be able to deduct interest payments made on the first $500,000 worth of home loans compared to the usual $1 million.
"I think the mortgage interest deduction will still remain. The House looks like it wants to cap it, and the Senate wants to leave it unchanged." said WTAMU Economics Professor Dr. Neil Meredith. "So there are some changes in scope and size, then there are some changes in elimination of particular itemization."
Limiting the mortgage interest deduction could take away the incentives of being a homeowner in the future.
"If consumers are the winners here, then we're all going to be happy. Our market will be healthy, and people will still buy homes because home ownership is important whether or not it has tax incentives." said Bulla. "The big concern here is if it doesn't achieve that goal the incentives are gone, and no, the consumer doesn't win. When the consumer loses, so does our industry."
If approved, the bill could add up to $1.5 trillion to the nation's debt.
"I am concerned about that. At some point you just keep adding debt, and adding debt, and adding debt, and adding debt," said Meredith."It can become a big liability for the country in reducing the country's credit rating.Then, it could become increasingly expensive to borrow more and more funds."
The process of getting the bill to the desk of the president remains an uphill climb.