Key Tax Breaks at Risk as Panel Looks at Cuts - WSJ

[PufPuf23]

Sacrosanct tax breaks, including deductions on mortgage interest, remain on the table just weeks before the deficit commission issues recommendations on policies to pare back with the aim of balancing the budget by 2015.

The tax benefits are hugely popular with the public but they have drawn the panel's focus, in part because the White House has said these and other breaks cost the government about $1 trillion a year.

At stake, in addition to the mortgage-interest deductions, are child tax credits and the ability of employees to pay their portion of their health-insurance tab with pretax dollars. Commission officials are expected to look at preserving these breaks but at a lower level, according to people familiar with the matter.

The officials are also looking at potential cuts to defense spending and a freeze on domestic discretionary spending. It is unclear if the 18-member panel will be able to reach an agreement on any of the items by a Dec. 1 deadline.

Rest of article at:

http://online.wsj.com/article/SB10001424052702304354104575568643889337142.html?mod=WSJ_hp_MIDDLTopStories

[montanacowboy]

1. Mortgage Interest?

you have got to be kidding me - if they take that away it means that anyone lucky enough to have held onto their homes will now be penalized by not being allowed to deduct the interest. Obama better get his head out of his ass on this commission - there are things you just don't touch; social security and deducting mortgage interest.

Unfrickin believable

[bluethruandthru]

2. and the tax cuts for the wealthy. Don't touch those! n/t

I hope none of these except the cuts to defense spending get any further in the stupid "deficit reduction commission's" recommendations.

[Kdillard]

3. Wow. I know in order for us to get back to fiscal responsibility there will pain

but I hope they take in consideration the consequences of some of the actions they are considering.