House Republicans kowtow to the business lobby, cap mortgage interest deduction

The servants of corporate America, also known as the House Republicans, on Thursday proposed the biggest overhaul of the U.S. tax code in three decades, a plan that would sharply cut tax rates for corporations and individuals while eliminating many popular deductions that Americans have long enjoyed.

At its core, the legislation would deliver the kind of tax relief to companies – $1 trillion over 10 years – that Republicans say will spark economic growth and encourage businesses to create more jobs and invest heavily in the United States.

Far less clear is the bill’s impact on middle- and working-class households. The trade-off between reducing tax rates but curtailing deductions – such as the amount that homeowners can write off for their mortgage interest payments – means the impact will vary widely from one family to another.

Source: House tax bill will cap mortgage interest deduction, leave 401(k)s unchanged – The San Diego Union-Tribune

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