Watch out for the so-called "tax reform" and the mortgage deduction.

[Honeycombe8]

When the Republicans talk tax reform and closing loopholes, I've heard it mentioned before, and I'd bank money now, that one of the main things they'll "agree" to is the doing away with the mortgage deduction.

Why would they so happily agree to that? Because the mortgage deduction is often the largest deduction for the middle class taxpayer. Without it, many would take the standard deduction, since they wouldn't have enough deductions to itemize. That means a tax increase, of course.

But it's more than that. The mortgage deduction means more to the middle class, because it is proportionally larger to their income, than it means to the wealthy. The wealthy pay much larger mortgages than the middle class, but proportional to income, it's smaller than for the middle class. And the wealthy will still have other deductions that will allow them to itemize.

So I'm watching out for that. Close loopholes, for sure. But the mortgage deduction is not a loophole. It helps people buy homes. It directly affects the real estate market. For many years it was for me the ONLY way I could get a break on my taxes. It eased the burden of buying my little house.

(Note: The doing away with the mortgage deduction was in the Simpson-Boles plan.)

[graham4anything]

1. getting rid of capital gains is also what the rich want. Most people don't realize the millions save

[RegieRocker]

2. Once upon a time

one could deduct all interest paid for credit. Interest was limited to 11% for credit cards. Can anyone say Ronnie Raygun. They want to tax you to hell and back. They do it by taking away deductions

[notadmblnd]

3. I don't think they will do away with it. I do think they will cap it

[still_one]

4. They get rid of the mortgage deduction, it would collapse the housing market. If they need

Revenue, get rid of capital gains, reduce military spending, and tax the 1%

[Angry Dragon]

5. Mortgage deduction taken away = Greatest Depression