Health insurance, mortgage deductions at risk under panel recommendations
Two of the nation’s most popular tax breaks —for home mortgage interest and employer-paid health insurance — shouldbe narrowed, a federal panel appointed by President Bush suggestedTuesday.
The panel’s recommendations will be made in areport scheduled to go to the Treasury Department by Nov. 1. Inaddition, the panel will recommend giving all Americans who pay taxesthe opportunity to deduct charitable donations, even if they don’titemize their tax returns.
The most far-reaching proposal previouslyendorsed by the panel is the elimination of the alternative minimumtax, which would affect 20 million taxpayers next year unless changesare made. But the panel is charged with making revenue-neutral changes,so it must propose raising as much money as the AMT repeal would lose.
Editor’s note: The home mortgage interest deduction is one of only a very few tax breaks still available to the middle class. It’s been around since 1913.