Mitt Romney, on the eve of the presidential debates, said he might be willing to reduce income tax deductions used by millions of families for home mortgages and health care costs.
The mortgage interest deduction, according to some analysts, costs the U.S. Treasury roughly $50 billion a year in revenue. However, the deduction presently is capped for mortgages north of $1 million.
Some Republicans would like to do away with the tax benefit entirely or at the very least eliminate it for second homes.
According to combined press reports, Romney said a change in the deduction could be part of a plan that includes a 20% cut in tax rates across the board.
Any effort to trim the ability of consumers to write-off interest payments for home loans would be countered by intense lobbying from the mortgage industry as well as homebuilders and Realtors.
