Don’t worry about proposal to drop interest deduction

(Flickr photo by JD Hancock)

A caller last week was worried about the investment condo he had purchased this year.

His concern centered on the a particular item in the draft plan floated by Erskine Bowles and Alan Simpson, co-chairs of President Obama’s fiscal commission.  After this post was published early today, they coincidentally released their 59-page report.

Their recommendations for deficit reduction must be approved by 14 of the panel’s 18 members, accepted by the administration, and passed by the Senate and House to be implemented.  I don’t hear many of those members embracing that sodden turkey.  (Sorry, but I’m still digesting.)

The item that had my caller concerned was elimination of the tax deduction for mortgage interest,