WatchThe family you described would get a 5% reduction in tax rate at the top bracket, and 2% and 3% for lower brackets.
I did overlook the 5% decrease in tax bracket... Because most of the articles i read only mentioned the top tax bracket dropping to 28% and the bottom bracket dropping to 8%.... your right, i should have read my own link closer....
So i guess the savings on that after tax income would counter some or all of the caps on itemization. Unless you really itemize a lot.. Then not so much.
This plan isn't as painful to the $100K earners as I previously thought... But it does still screw anyone bribed into buying a home by the government with promises of a MID deduction and $8000 rebate.
It's kinda the governments way of making anyone that got that $8000 rebate.. pay it back over the course of a few years by capping their MID.
This thread was forked from Mortgage interest Deduction limit... Toomey\'s Tombstone plan? by errc.