By JLP | October 26, 2010
I know we keep talking about this stuff but it’s important.
I read this article this afternoon: Key Tax Breaks at Risk as Panel Looks at Cuts.
The biggie on the table is the mortgage interest deduction. That’s not all:
…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.
Ending the mortgage interest deduction would personally hurt us. Maybe they can grandfather in those of us who already have mortgages since they gave $8,000 credits to first time homebuyers earlier this year.
This portion of the article was telling:
…officials have found there aren’t any easy ways to balance the budget, and they are expected to steer clear of more polarizing issues like Medicare, Medicaid, Social Security and a broad rewrite of the tax code in their short-term recommendations. The panel could still make long-term recommendations to change these issues, but they would be less concrete.
Once again, we duck the really large issues and stick with patchwork solutions. We are not going to rein in the deficit through taxes alone.