Today President Barack Obama announced his Mortgage Interest Deduction Plan. This plan would limit the tax rate of high income taxpayers itemized deductions to 28%. The plan would raise $318 billion dollars in the next 10 years.

According to WSJ.com
“Households paying income taxes at the 33% and 35% rates can currently claim deductions at those rates. Under the Obama proposal, they could deduct only 28% of the value of those payments…The changes would be phased in gradually over the next few years. For the 2009 tax year, the 33% tax bracket starts with couples with taxable earnings of $208,850, when adjusted for personal exemptions and various deductible expenses. A taxpayer in the top bracket paying $1,000 of mortgage interest, for example, would see a tax break worth $350 reduced to $280.”

Check back soon for more Obama stimulus plan news and how it can help you refinance or get into a new mortgage.

Subscribe via email

Enter your email address:

Delivered by FeedBurner