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Monday lawmakers in the house we'll start going through the tax code line by line as they try to eliminate.
And reduce deductions on which we spend one point one trillion dollars a year chief national correspondent Jim Angle tells us it sounds much simpler than it is.
It's the goal is to clean up the tax code and lower your taxes in the process the White House is always made is sound simple by singling out a couple of favorite targets ask them corporate generous to give up their tax breaks or oil and gas companies to give up there.
Could raise depending how -- design them 304050.
Billion dollars over the next ten years so it's not nothing.
But relative to the deficit and debt challenges we have is quite small.
In fact a large portion of tax breaks are widely enjoyed by all Americans not -- wealthy individuals or corporations.
The number one tax break for instance is not taxing employer provided health insurance making an expensive benefit freed -- workers.
Another big one -- senator Charles Grassley recently noted -- deductibility of state and local taxes which tend to be higher in democratic states.
My guess is that with a heavy yet.
On the heavily tax blue state taxpayers -- the majority will not want to visit that deduction.
Or one of the most popular the deduction of home mortgage interest this disproportionately.
Goes to the middle income taxpayer.
Do we really want it -- the tepid.
Housing recovery President Obama has proposed a way to avoid making those politically difficult decisions by simply capping deductions and 28%.
Spending a dollar on mortgage interest.
You could get at most 48 cents back.
At the moment it's based on your marginal tax rate and so someone in the highest tax rate today would get almost forty cents back you get to decide where it goes but there's a maximum for -- Though easier it also violates the president's longstanding pledge to not raise taxes on families making less than 250000.
But 28% cap would take more from families making 223000.
A year and single filers making 183000.
While Republicans want tax reforms to reduce the deficit and lower tax rates in the.
Restrictions very happy with broadening the base -- they haven't signed on to lowering rates we've seen them go the other direction in recent years so tax forms can be hard -- for them and obviously the party's.
Disagree a little bit on how they would use that money.
The White House does support a reduction in corporate rates but many Democrats want to use any proceeded -- -- reform.
To replace this sequester and spend more not lower rates Brett.
Jim thank you.
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