GOP: All Talk on Eliminating Tax Breaks – No Action: This week, writers of the Republican platform in Tampa dipped their toe in the tax reform water by excising a plank in previous platforms defending the mortgage interest deduction. Under pressure from groups such as the National Association of Home Builders, language was quickly reinserted to protect the deduction.
The fact is that if fundamental tax reform is on the table, then so is the mortgage interest deduction. Making an exception for it automatically becomes the best possible argument for keeping the next most popular deduction and so on – until we are right back where we started. The fact that Republicans backtracked on mortgage interest the moment there was pushback from special interests doesn’t bode well for tax reform even if Mr. Romney wins.