Home Lenders Warn of Higher Rates Without Book Tax Carveout (1)

The mortgage industry is pushing Congress for a carve-out from part of the Biden administration’s corporate tax plan, cautioning that a tax hike on the biggest lenders would trickle down to borrowers in the form of higher mortgage rates and fees.

President Joe Biden’s proposals include a 15% minimum tax on book income, the pre-tax earnings corporations publicly report to investors on their financial statements. The book tax is aimed at very large corporations that end up with little-to-no taxable income some years.

The Treasury Department projected the book tax would only hit about 120 companies with ...