Is the Mortgage Interest Tax Deduction Disapearing?

Co-chairmen of the White House‘s bipartisan deficit-reduction commission are ready to propose ending many popular middle-class tax breaks, including the mortgage-interest deduction.

Democrat Erskine Bowles and Republican Alan Simpson are poised to unveil their final recommendations Wednesday. Their ideas are part of controversial proposals to reduceĀ  the U.S. government‘s debt through a combination of spending cuts and an overhaul of the tax code.

Their proposals may result in holding down the growth of the federal debt by at least $3.8 trillion by 2020, and perhaps more, the two said at a news conference. Messrs. Bowles and Simpson said their plan was preferable to a debt crisis like Europe‘s that could ensue without changes to fiscal policy.

Excerpts taken from:

Mortgage Tax Break in Crosshairs,

By DAMIAN PALETTA And JOHN D. MCKINNON of the Wall Street Journal