Industry News

Mortgage income tax deduction might be lowered

Tax reform panel likely to recommend change

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President Bush's Advisory Panel on Federal Tax Reform next week is likely to propose a change in the deduction for home-mortgage interest that, if adopted by Congress, would have a drastic impact on regions with high housing prices, media reports said. In a meeting Tuesday, the panel agreed to recommend lowering the limit, perhaps to the maximum mortgage that can be guaranteed by the Federal Housing Administration, according to reports. Such a plan is not likely to pass Congress, reports said, but it could spark interest in changing the mortgage-interest deduction. The nine-member advisory panel, appointed by President Bush, has been meeting since February to discuss ways to reform and simplify the nation's tax laws. The panel has been directed to submit to the Secretary of the Treasury a report containing revenue neutral policy options for reforming the Federal Internal Revenue Code not later than Nov. 1, 2005. Bush asked the panel to recommend ways to simplify federal ta...