As negotiations continue between the White House and Congress to address the Fiscal Cliff. The idea of Itemized Deduction Cap is gaining traction
As negotiations continue between the White House and Congress to address the Fiscal Cliff, one idea gaining traction is capping the maximum amount of itemized deductions a taxpayer may claim. If this is implemented, it would raise taxes significantly for filers living in expensive states. According to a study by The Wall Street Journal, tax filers who itemize in California, New York, the District of Columbia, Connecticut, New Jersey, Maryland and Massachusetts would see the greatest increase in income taxes. These states have high property taxes and higher housing costs leading to larger mortgages and more interest payments. Limiting the ability to itemize these taxes and interest costs would lead to higher taxes. The thinking is that this is a way to raise tax revenues that increase the base of income being taxed without actually raising tax rates.
Learn more at The Wall Street Journal.
Who is Mike Periu?
Mike Periu is the President of Proximo, LLC, a company that markets education and training programs to small business owners, entrepreneurs and consumers.
Mike Periu has been interviewed over 500 times for broadcasters including CNN, NBC TVE, RTE and others. Mike is a contributing author to OpenForum, Yahoo! Finanzas and the Huffington Post.
Mike graduated from Georgetown University in Washington, DC. His degrees are in Finance and International Business. In addition to his work Mike is also on the Board of the Council for Economic Education.
