GOP Plan targets Mortgage and State tax deduction breaks to protect the rich
Millions of taxpayers who take advantage of deductions for mortgage interest, charitable donations and state and local taxes would be targeted for potential tax hikes under a GOP plan to raise taxes by $290 billion over the next decade to help reduce the nation’s deficit.
Some workers could also see their employer-provided health benefits taxed for the first time, though aides cautioned that the proposal is still fluid.
The plan by Sen. Pat Toomey, R-Pa., who serves on the 12-member debt supercommittee, would raise revenue by limiting the tax breaks enjoyed by people who itemize their deductions, in exchange for lower overall tax rates for families at every income level. Taxpayers who already take the standard deduction instead of itemizing - about two-thirds of filers - could see tax cuts. The one-third of taxpayers who itemize their deductions might find themselves paying more.
