Obama Tax Panel Looks at Eliminating Mortgage Interest Deduction as Well as Child Tax Credits

Sacrosanct tax breaks, including deductions on mortgage interest, remain on the table just weeks before the deficit commission issues recommendations on policies to pare back with the aim of balancing the budget by 2015.

 

The tax benefits are hugely popular with the public but they have drawn the panel’s focus, in part because the White House has said these and other breaks cost the government about $1 trillion a year.

 

 Sacrosanct tax breaks, including mortgage-interest deductions, remain on the table just weeks before the deficit commission issues recommendations on ways to balance the budget by 2015.

 

At stake, in addition to the mortgage-interest deductions, are child tax credits and the ability of employees to pay their portion of their health-insurance tab with pretax dollars. Commission officials are expected to look at preserving these breaks but at a lower level, according to people familiar with the matter.

 

The officials are also looking at potential cuts to defense spending and a freeze on domestic discretionary spending. It is unclear if the 18-member panel will be able to reach an agreement on any of the items by a Dec. 1 deadline.

 

From:

 

http://online.wsj.com/article/SB10001424052702304354104575568643889337142.html?mod=WSJ_hp_MIDDLTopStories

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