I think I could live with just about every single suggestion this bipartisan deficit panel has made, at least, those that I have read, except the home mortgage deduction limitations and eliminating the mortgage deduction on second homes. Homeowners can now deduct mortgage interest on mortgages up to one million dollars. But would a second home be defined as a “vacation” home? Would that also include a home purchased for investment, to lease out? Of course there would be ways around that, I suppose — such as putting the investment property in a limited liability partnership, which then becomes an entity itself and it takes the deductions. No, the housing market is still too fragile for this nonsense. Let the mortgage deductions remain.
More vitally, did anyone on the panel address the damn Alternative Minimum Tax?