If you've heard any of the headline news today you'll have heard some reporter talking doom and gloom to the "underclass" and reform for the "rich" with the Tax Reform Report released today. I heard Ann Compton a number of times while driving in the car talk about the elimination of mortgage interest credit. The lead to the story was supposedly for her to tell us about the Tax Reform recommendations and all she talks about is mortgage interest.
The Tax Prof has boiled the explanation down to 2 options: Simplified Income Tax Plan and the Growth and Investment Tax Plan. I for one would prefer ( since I've got no choice, I've got to choose one) a tax system which doesn't penalize savings. I'd rather not have a mortgage (and currently don't have one) but it will significantly torque me off if I pay more income taxes because I don't have enough debt from a mortgage to reduce my taxes. How stupid is that?
For some guidance on the upcoming wailing and gnashing of teeth around Federal Income Tax Reform check out what the Tax Prof has to say. I'm trying not to get myself excited about this reform ever seeing the light of day since that probability is about the same as my winning the lotto!
TaxProf Blog: Report of President's Advisory Panel on Tax Reform