The tax plan unveiled today by Republicans in the House of Representatives could lead to a housing recession, according to National Association of Home Builders CEO Jerry Howard.

Howard said his members were "irate" about a proposed plan to slice the mortgage interest deduction in half, to a maximum of $500,000.

"There are seven million homes on the market right now that are more than $500,000. Those houses are automatically going to be devalued," he said. "What we've seen is that when house values start to go down, it spreads to the next market after that, and another market, and the next thing you know you have a housing recession."