In addition to the federal estate tax of 40 percent (which is fourth highest in the OECD), many U.S. states levy their own estate and inheritance taxes. Estate taxes are charged against the estate regardless of who...
- Reuters quotes Will McBride on the mortgage interest dedu...
Reuters quotes Will McBride on the mortgage interest deduction
Romney's remarks on limiting tax deductions draw fire
By Sam Youngman and Donna Smith
WASHINGTON | Mon Apr 16, 2012
Cutting the mortgage deduction for second homes for all income groups could raise about $8 billion a year, according to an estimate by the Tax Policy Center.
Romney's floated proposal, because it would apply to high-earners only, therefore would raise less.
Economists across the spectrum would agree to kill that tax benefit, according Will McBride, an economist with the conservative-leaning Tax Foundation. "Every tax policy organization and economist agrees on that, except the few who are in the pay of the housing lobby," he said.
Congressional Republicans floated a similar idea last year in talks to cut the deficit, but a top Republican aide said it likely would be considered only in the context of broader tax changes.
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