Proposed tax plan could lead to housing recession

Howard was speaking on CNBC’s Power Lunch.

Stocks of the major homebuilders were falling Thursday after the tax plan was announced. Toll Brothers, a Horsham, Pennsylvania-based luxury homebuilder was hit hardest, falling more than 6 percent. Lennar in addition to also KB Home were each down more than three percent Thursday.

Fort Worth, Texas-based D.R. Horton, America’s largest homebuilder by the number of houses sold, was down less than one percent on the news.

The GOP tax plan also nearly doubles the standard deduction, meaning fewer taxpayers might itemize in addition to also take the mortgage interest deduction. Currently, about 21 percent of filers take the mortgage deduction, nevertheless under the brand-new framework, only about 4 percent might, according to recent estimates via the Tax Policy Center.

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