Obama budget proposal: What would impact housing?
President Barack Obama once again is calling for a cap on the value of itemized deductions, including the mortgage-interest and property tax deductions, in his 2014 federal budget request. The cap would limit the value of all tax deductions to 28 percent for households in the higher brackets. If enacted by Congress, that would cap deductions at 28 percent for taxpayers currently in the 33, 35 and 39.6 percent tax brackets.
The president has sought the deduction cap every year he’s been in office, however, and it has never moved beyond the proposal stage. Analysts say it’s unlikely to move beyond the proposal stage this year.
Under the federal budget process, the president’s budget request serves as the administration’s statement of priorities, which Congress can consider as it crafts an overall budget blueprint for the year. Even the budget itself, once one is passed by both Houses of Congress, serves only as a fiscal guidepost for lawmakers and does not have the force of law.
For real estate, the president’s latest budget proposal largely rehashes previous proposals.
