Ironically, I’d probably do ok under the proposed plans. We’re paying off our house and have a low balance, low interest rate – so losing the mortgage deduction isn’t the end of the world. Our family goal has been to eliminate that deduction by paying it off.
What I didn’t see addressed in the article is 401k funds. I would guess that since both plans are kind of tiered flat taxes (eliminating deductions) 401k/IRA contributions would go away. (No deductions so no tax deferred contributions.) But would you still be able to have the money already invested grow tax free?
The SS changes seem reasonable – but maybe I feel that way since I’ll be in my late 80’s/early 90’s when the means testing happens… by that time my assets will be spent down.
The documents linked at tpm seem to be broken – but you can see the full plan here:
