The head of *'s Tax Reform Panel is on CSpan

[CatWoman]

I feel another backlash coming...........

These guys want to do away with the home mortgage deduction.

I can't see many people going along with that.

[napi21]

1. That's not exactly true. They want to change the way the mtg.

deduction is calculated, and eliminate it all together on homes valued over $350,000 to $450,000. The allowance is based on the FHA loan cap in each area. The deduction would change to a credit so a taxpayer who only had a deduction for mtg. interest, they wouldn't have to itemize their return, they'd simply list the interest they paid as a credit.

There seems to be quite a few different recommendations, and I'm sure there are some that would be quite unacceptable, but this one doesn't sound that bad.

[FormerDittoHead]

2. AGAIN taxing the 'achievers' and not the rich...

Talk about class warfare! Consider the AVERAGE price of a dwelling in NYC!

I appreciate the fact that those buying $400k houses / condos are not the "poor", but the fact is that they DO probably WORK for a living (often both spouses), and this, along with the ever increasing AMT punishes these hard working (most of them) lawyers, doctors, mid-level managers and small business owners who are paying the highest tax rates, more than those who are living off of rents, interest (bonds) and dividend income (aka THE REAL RICH who got the REAL tax breaks early in this BushCo administration).

And I'm not too sure either that I agree with the "all together" (if that is correct) in your take (which I assume is correct), in that, to be consistent with tax law, should be for the FIRST ~$400k of valuation. It would be quite unfair for someone with a $390k house to get all of their deduction year after year and for having a house worth 2 1/2% more you get NOTHING.