The newly elected Obama adimininstrating is calling for slashing mortgage deductions for high income taxpayers. Included,of course, his home town of Chicago’s mortgage interest rates.
The new proposal would (there is no reason it will not pass) cap at 28% the tax for itemized deductions. Leaving the wealthier Chicagoans and Americans in higher tax brackets with much less tax breaks. Including income taxes, charitable contributions and of course deduction of mortgage intertest rates. I very much agree with the plan to tax the rich as a big stepping stone in reversing this recession and housing crisis.
According to CNN the move will raise around $318 billion over 10 years. As the president campaigned to increase taxes for housholds earning $250k per year, he is immediatly putting his plan into action.
The overwhelming majority of low and middle income people take the standardized deduction when they file their taxes [and] they receive no benefit at all from the mortgage interest deduction. While homeowners in the highest marginal tax bracket, those earning more than $357,700 a year, get back 35 cents on their taxes for every dollar they spend on mortgage interest. Under the Obama plan, that benefit would be reduced by 20% to 28 cents on the dollar.
Chicago Tax Attorneys will have a lot of business from the rich on there hands when this comes into play.
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