MortgagePolitics & Money

Senate may vote on tax reform as soon as this week

Will the MID stay or go?

Tax reform is an important, priority issue put forward by the Trump administration.

And there are two different tax reform plans currently being debated, each of which has a different impact on the mortgage interest deduction.

Will MID stay as is or go down a new road?

We may know sooner than later.

According to investment bank Keefe, Bruyette & Woods, the Senate may debate and vote on its version of tax legislation by the end of the week. However, they think several changes may be made before it makes it to the floor.

In a note from KBW this morning, equity researchers Brian Gardner and Michael Michaud said to expect some modifications, but they did not mention MID specifically.

Nonetheless, they remain confident: “We think the recent negative tone in the press about the difficulty in passing a tax bill has been overdone. We acknowledge that there are some political hurdles but we do not see any of them as unresolvable and we continue to handicap the prospects for passing some form of tax legislation at around 70-75%.”

Global investment bank Nomura also weighed in on the topic this morning as well. 

Chief economist Lewis Alexander said he also believes there is an increased likelihood that Congress will pass a major tax reform package by the end of 2017. 

“We have long held that the current Congress would pass some sort of tax package. However, recent events suggest that tax cuts could come sooner, and be larger, than we had expected,” Alexander writes. 

“In particular, the probability that in the next few weeks Congress will pass a tax bill that is very similar to the current bills being considered in the House and Senate has increased,” he added.

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