VIDEO – Mitt Romney and Paul Ryan want to end or limit the mortgage interest tax deduction. President Obama has refused to end or limit the mortgage interest deduction because it greatly benefits middle class families.
Mitt Romney and Paul Ryan want to cut taxes for the richest Americans and propose the elimination of tax deductions in order to offset the cuts. Which tax deductions would they eliminate? In order to offset their plan that would cost $4.8 trillion, the biggest tax deduction Romney and Ryan will cap or eliminate is the mortgage interest deduction.
This huge admission by Mitt Romney went largely overlooked, as he dropped the bombshell just before his first debate with President Obama. And there is a reason Romney timed it that way: the deduction is highly popular with all Americans, Republicans and Democrats alike. Back in April, Romney mentioned eliminating the deduction for second homes. But now with just weeks before the election, Romney has admitted that in order to pay for his massive tax cuts for the rich he would have to eliminate or limit that deduction on all homes.
When Romney and Ryan say they want to “lower the rate and broaden the base” about taxes, it simply means they will lower the rate for everyone (including the top 1%), but eliminate deductions that help middle class and low-income families to make up the difference. The elimination or reduction in the mortgage interest deduction would raise the tax burden on the middle class. In other words, they will raise taxes on the middle class while lowering taxes for the wealthy.
The Romney campaign also said he is looking at lowering or eliminating a taxpayer’s personal exemption and the deduction or credit for healthcare. Combining changes to those two areas with the limit on deductions would maintain Romney’s goal of keeping tax burdens the same for wealthy and middle income taxpayers, the adviser said. Mitt Romney wants to cap deductions at $17,000 which would greatly increase taxes on the middle class in order to offset his dramatic tax decreases for the wealthy.