Income Tax Reform Panel suggestions

The Presidential Tax Reform Commission formed in January recently concluded their service with ideas on substantial changes to the federal tax code. These would lower all rates but severely limit the deductions and credits that are available to seek to simplify the process of tax preparation.

Specifically, the panel said the mortgage interest deduction should be replaced with a credit worth 15 percent of mortgage interest paid, to spread the benefit to more homeowners of modest incomes. The panel also recommended lowering the $1 million limit on mortgages eligible for the tax break to the average regional price of housing, ranging from $227,000 to $412,000.

Tax breaks for mortgages on second homes and home-equity loans would be eliminated.
In another major change, taxpayers could purchase health insurance using untaxed money up to about $5,000 for an individual and $11,500 for a family.


The article discussing the tax reform panels ideas is here.