- Carving up a popular deduction
Here are some proposals that are aimed specifically at the mortgage interest deduction:
- Eliminate it. Raises $108 billion this year and $1.26 trillion over 10 years. Biggest impact on married families with children, raising their taxes by an average of $1,464 a year, compared to $667 for couples with no children.
- Gradually reduce the mortgage cap from the current $1 million to $500,000. Raises $41 billion over 10 years.
- Cap the deduction at 28 percent, so filers in higher tax brackets could deduct only 28 percent of their interest. Raises $3 billion in 2012 and $40 billion over 10 years. Biggest impact on married families with children.
- Put a dollar limit on all tax deductions, which would trim the mortgage interest deduction indirectly.
- Cap qualifying mortgages at the median price of a home in the U.S., currently $197,000, according to DataQuick.
Source: Congressional Budget Office, Joint Committee on Taxation, Urban Institute, Reason Foundation, San Jose Mercury News
Posted: Sunday, December 2, 2012 12:00 am
Southern New Jersey Real Estate - PressofAtlanticCity.com
Sunday, December 2, 2012 12:00 am.