Tax Writers Reject MI Deduction

House and Senate tax writers working on a huge corporate tax bill have rejected a proposal that would create a tax deduction for mortgage insurance premiums."We are disappointed that the MI deduction is not included," a spokesman for the Mortgage Insurance Cos. of America said. "We hope they will reconsider" before the bill is completed. The tax writers are desperately trying to pass the bill this year. The legislation would eliminate tariffs the European Union is imposing on exports by U.S. manufacturers. However, the tax bill emerging from a House-Senate conference "goes far beyond the bill's core objective," according to Treasury Secretary John Snow, who raised objections to the "myriad of special interest rate provisions." The secretary also said one provision that would block the Labor Department from enforcing its new overtime rules could force a veto. If the overtime provision were included, "the president's senior advisers would recommend that he veto the bill," Mr. Snow said.