Treasury Secretary Steven Mnuchin reiterated in an interview with the Wall Street Journal that the mortgage interest tax deduction will stay put in the Trump administration’s pending tax plans.
According to an article in The Wall Street Journal by Richard Rubin, Kate Davidson and Nick Timiraos, “The Trump administration and top congressional Republicans intend to release a more detailed tax plan in the next few weeks.”
An answer to the much-debated future of the mortgage interest tax deduction is likely to finally be included in these plans.
These new comments from Mnuchin repeat comments from him earlier this year. Back in March, Mnuchin said the mortgage interest tax deduction will not be changed in the Trump administration’s tax plan.
From the WSJ:
Mr. Mnuchin also reiterated that tax breaks other than those for charitable contributions, mortgage interest and retirement savings could be curtailed, echoing Mr. Trump’s statement Wednesday that the administration would be “getting rid of the loopholes and complexity that primarily benefit the wealthiest Americans and special interests.”
But just because the administration isn’t getting rid of the mortgage deduction, it doesn’t mean it can’t be changed. According to an article in CNBC by Diana Olick, there’s still a chance something could happen to the MITD in the tax reform plan.
From the article:
The hands-down favorite of taxpayers is back on the negotiating table as tax reform kicks into high gear, according to industry sources, even though no one from the Trump administration has said that out loud, and Republican leaders in Congress say not to worry.
"Saying they aren't going to get rid of it isn't saying they won't touch it," said one source who agreed to speak only on background. "There are clearly discussions going on around reducing the maximum of the mortgage interest deduction to the $600,000 range."
America should have an answer on all this soon though, according to the WSJ’s interview with Mnuchin.
The WSJ stated:
After Congress returns from summer recess, the so-called Big Six on tax policy is set to meet Sept. 5 with Mr. Trump to hash out the next steps, likely including the content and timing of any future tax policy document. That group released a tax framework in July that contained little detail about future tax rates and what breaks would go away.