Lower the cap on the mortgage interest tax deduction

By Washington Examiner

Published August 8, 2017 10:35pm ET

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Lower the cap on the mortgage interest tax deduction — Tax reform will not be easy to pass through Congress. But by embracing a common-sense idea that has some popularity with liberal groups, and which won't give homeowners any reason to resist, Trump and Congress might improve their chances of accomplishing something positive and eliminating debilitating distortions from the tax code. (AP Photo/Steven Senne) | Steven Senne

President Trump has been floating a good idea for tax reform. As part of a strategy to cut tax rates and eliminate loopholes, his administration may lower the cap on deductions for home mortgage interest payments.

Homeowners currently are allowed to reduce their tax liability by deducting annual interest on up to $1 million of mortgage debt. The plan being considered would cut the allowance by half and let homeowners deduct interest paid on only the first $500,000.

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