Trump tax overhaul under fire as Congress readies bill

UNITED STATES: President Donald Trump’s plan for overhauling the US tax system faced growing opposition from interest groups yesterday, as Republicans prepare to unveil sweeping legislation that could eliminate some of the most popular tax breaks to help pay for lower taxes.

Republicans who control the US House of Representatives will not reveal their bill until Thursday. But the National Association of Home Builders, a powerful housing industry trade group, is already vowing to defeat it over a change that could affect the use of home mortgage deductions, while Republican leaders try to head off opposition to possible changes to individual retirement savings and state and local tax payments.

Trump and Republicans have vowed to enact tax reform this year for the first time since 1986. But the plan to deliver up to US$6 trillion (NZ$8.7t) in tax cuts for businesses and individuals faces challenges even from rank-and-file House Republicans.

House and Senate Republicans are on a fast-track to pass separate tax bills before the November 23 US Thanksgiving holiday, iron out differences in December, send a final version to Trump’s desk before January and ultimately hand the president his first major legislative victory. Analysts say there is a good chance the tax overhaul will be delayed until next year.

The NAHB, which boasts 130,000 member firms employing 9 million workers, says the bill would harm US home prices by marginalising the value of mortgage interest deductions as an incentive for buying homes. The trade group wants legislation to offer a tax credit equalling 12 per cent of mortgage interest and property tax payments but says it was rebuffed by House Republican leaders.