Quicken’s Gilbert: Leave the Mortgage Deduction, Take the Tax Cut

Sep 29, 2017

The long-awaited tax reform legislation from House Republicans will impose new limits on deductions that have been beloved by homeowners, according to a preview of the plan obtained by the Associated Press.

When asked to voice his opinion on President Trump’s proposed tax overhaul, Quicken Loans founder and Chairman Dan Gilbert preferred generous tax cuts to maintaining the status quo surrounding the mortgage interest deduction.

In an interview this morning on CNBC's "Squawk Box," Gilbert admitted that the deduction is a “nice thing to have,” but noted that under the Trump plan taxpayers can only claim the deduction if they itemize. But he also pointed out that the Trump plan would double the standard deduction, which could be more beneficial in the long run because it would offer an overall lower tax bill.

“As long as rates are at a reasonable level,” he said, “it's about the net number” paid in taxes as a percentage of income.

Gilbert’s comments echoed remarks made by Gary Cohn, director of the White House National Economic Council at a press conference yesterday. "People don't buy homes because of the mortgage deduction," Cohn said. "The number one reason why people buy homes is they're excited and optimistic about the economy."

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Phil Hall

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Sep 29, 2017

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