Nov 11, 2010
Reports on cuts to MID are premature
11 Nov 2010
Posted by VAR
This is how rumors are started. Yesterday several major media outlets (WaPo, NYT) ran stories about a sneak peek of a draft report from the Deficit Reduction Commission (DRC), a bipartisan commission charged with recommending steps to reduce the federal debt. The draft report contains a recommendation that the popular Mortgage Interest Deduction (MID) tax break be reduced or repealed in order to bring the government’s expenses in line with its revenues.
Here are the facts: The DRC hasn’t released its report. Yesterday’s stories were about a sneak peek at a draft. In order to report out its recommendations, 14 of the 18 members must agree to them. As it stands, it’s expected that this current draft will not garner enough votes from the DRC members to pass and Ezra Klein of the Washington Post posits that the DRC may never agree to anything.
All of this aside, Congress must ultimately act on any recommendation the DRC may bring forward, and the DRC itself has very little power to force Congress to do anything with their plan.
Now you know.