President Obama's plan to limit two mortgage interest and charitable deductions for those with taxable income of $250,000 and up will hit a wall of resistance from entrenched special interests, according to an article yesterday by Tami Luhby at CNNMoney.com.
The article said that the White House maintained that changes in these deductions would bring in $321 billion over 10 years.
"The Obama administration, as well as several tax and deficit commissions, have called for limiting or eliminating the deductions in the past. But the proposals have gone nowhere and the same outcome is expected this year," the article said.
The article said that Jerry Howard, chief executive of the National Association of Home Buildings said that "we will oppose any limit," adding that "this is an attack on the middle class."
"This is the second time in recent months that the Obama administration has recommended curtailing the deduction, which costs the Treasury Department an estimated $131 billion a year. In December, a presidential debt panel recommended turning the itemized deduction in to a 12% non-refundable tax credit available to everyone. It would also cut the size of eligible mortgages in half to up to $500,000," the article said.
"NAR will remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest," National Association of Realtors President Ron Phipps said at the time.
While charities don't have the same spending power on lobbyists, they also plan to make their voices heard, the article continued, adding that "the 54 most generous donors in America gave only $3.3 billion in 2010, the smallest sum since 2000, according to a ranking compiled by The Chronicle of Philanthropy and Slate magazine."
The article said that the White House maintained that changes in these deductions would bring in $321 billion over 10 years.
"The Obama administration, as well as several tax and deficit commissions, have called for limiting or eliminating the deductions in the past. But the proposals have gone nowhere and the same outcome is expected this year," the article said.
The article said that Jerry Howard, chief executive of the National Association of Home Buildings said that "we will oppose any limit," adding that "this is an attack on the middle class."
"This is the second time in recent months that the Obama administration has recommended curtailing the deduction, which costs the Treasury Department an estimated $131 billion a year. In December, a presidential debt panel recommended turning the itemized deduction in to a 12% non-refundable tax credit available to everyone. It would also cut the size of eligible mortgages in half to up to $500,000," the article said.
"NAR will remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest," National Association of Realtors President Ron Phipps said at the time.
While charities don't have the same spending power on lobbyists, they also plan to make their voices heard, the article continued, adding that "the 54 most generous donors in America gave only $3.3 billion in 2010, the smallest sum since 2000, according to a ranking compiled by The Chronicle of Philanthropy and Slate magazine."
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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