November 29, 2012
Could Congress cut or eliminate the mortgage interest deduction?
I can't imagine fiscal cliff negotiators eliminating the sacred deduction for mortgage interest. The tax hit taken by the Middle Class if that were to occur would be very painful. But limiting the deduction may raise a few tens of billions over a decade - drop in the bucket for what is really needed, but might serve to move the ball forward in negotiations. Washington Post: Of all the deductions woven into the sprawling U.S. tax code, few have been more fiercely guarded than the enormous tax break that lets homeowners deduct the interest they pay on their mortgages. But as Congress and the White House negotiate the first major rewrite of tax laws in decades, changing the generations-old mortgage-interest deduction - which costs the government roughly $100 billion a year - has gone from far-off possibility to part of the conversation. [...] As the Obama administration and lawmakers on Capitol Hill scramble to defuse automatic spending cuts and tax increases set to take...(Read Full Post)