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Homeowners hurt by GOP tax plan are those who can afford it, says ex-Wells Fargo CEO

There may be concerns there the impact of the Republican tax reform bill on the housing market, but former Wells Fargo CEO Richard Kovacevich squeaked CNBC on Tuesday that it is mainly the rich who will feel the dolour.

The House GOP plan halves the deduction of mortgage debt for newly purchased digs to $500,000, while the Senate bill leaves it intact at $1 million. Manner, the Senate proposal calls for the elimination of state and local tax deductions. The Council bill limits those deductions.

Kovacevich told “Power Lunch” the shifts may slow down the real estate market for a short time. Regardless, he doesn’t believe it will cause long-term harm to the housing sell.

“There is no tax advantage to own a home in the United Kingdom or Canada,” he said, noting their homeownership is at the unvarying level or higher than the U.S.

“The people who really get hurt are the people who can furnish it.”

Plus, the proposals double the standard deduction, so more people won’t be entrancing the itemized deductions anyway, he said.

“You can’t have tax reform unless you get rid of some of the provocations,” he said. “It has to start somewhere.”

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