Steven Bean in American Banker

The Trump Administration’s proposal to slash the corporate tax rate from 35 to 15 percent is a bittersweet blessing for one group of commercial banks. On the one hand, lower taxes are appealing but, on the other, for commercial banks that invest in the affordable housing market, it is a downright scary prospect. These banks have traditionally relied on tax deductions, including depreciation and interest payments, to make their investments in affordable housing financially viable but the simple math is deductions taken from a 35 percent tax rate are far more valuable than those taken from a 15 percent rate.

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