In the immediate wake of the details of the Republican plan for tax reform, home builders sold off sharply. While the stock market quickly moved on, the angst in the industry continued. Toll Brothers (TOL) CEO Douglas C. Yearley plainly claimed that the proposal to reduce the cap on the mortgage interest deduction would harm the housing market.

Toll Brothers CEO: Capping mortgage interest deduction would discourage home ownership from CNBC.

Now that tax reform is a near reality, TOL’s stance clearly changed from one of resistance to acceptance. The story the company told in its earnings conference call last week lacked the subdued alarm expressed last month. In fact, according to TOL, the combined impact of all the Republican tax proposals should be a wash for its high-end customers.

TOL tried to anticipate analyst questions on tax reform and allay fears with the following assessment:

“….On the corporate side, we are encouraged by the potential reduction in the corporate tax rate as it will help our earnings and cash generation. On the personal side, while the potential reduction in the MID, real estate tax and SALT deductions not being helpful to buyers, especially in our coastal regions, we believe they may be offset by a lower stated tax rate, the doubling of the standard deduction, the potential removal of AMT, lower pass-through tax rate and the elimination of the phaseout of itemized deductions. We have always believed that our buyers are generally not tax driven when it comes to buying our home.

The issue of tax reform has been looming for months, and we haven’t seen a change in our buyers’ behavior. They continue to buy. Sales continue to be strong. With the Senate bill coming out last week, the headlines have only increased, yet this past week had the highest sales for a first week of December since 2005.”

TOL delivered two messages. First, they believe that what home buyers lose in tax benefits on buying a home, they will gain back in other deductions on income taxes. Secondly, even if the math does not quite work out, TOL’s buyers of luxury homes are so wealthy that tax implications do not impact their buying decisions anyway.