Limits on Itemized Deductions Called Likely as Obama, Boehner Negotiate

Lawmakers say the current fiscal cliff negotiations are in the hands of President Obama and House Speaker Boehner and, although the two sides remain far apart, there is a good chance any final package could include some sort of cap on tax deductions. The notion of curbing or eliminating certain deductions has gained momentum after some key Republicans suggested it could be an alternative to raising marginal income tax rates. Both Obama and Republicans who sat on the 2011 Joint Select Committee on Deficit Reduction have proposed ways to limit deductions to reduce the nation's budget deficit.

Try Daily Tax Report now