[quote briansd1]
President Obama’s proposal is a modest rollback of the MID.
The president once again proposed in his budget to curtail high-income earners’ tax deduction for mortgage interest payments and charitable contributions.
Under his proposal, taxpayers in the 33% and 35% tax brackets would only be able to deduct their contributions and mortgage interest payments at the 28% rate. It would affect those with taxable income of $250,000 and up and bring in $321 billion over 10 years, according to the White House
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The problem is that there is a way around the elimination of the mortgage interest deduction. The deduction was written into code to harmonize the corporate tax laws with the individual tax laws and allow everyone the deduction that the upper income people were getting through skillful tax attorneys. This change will only make our tax laws yet more byzantine.
The other aspect is that the MID pushes the RE prices up and property tax is initially based on the price sold. The politicians really don’t want to eliminate it because it would reduce a source of funding..
