Homeowners' tax breaks scrutinized

You might say the Seattle Times has some big news:

Just as the U.S. housing boom appears to be slowing, debate is starting among policymakers about reining in one of the most-sacred cows of U.S. public policy: the mortgage-interest deduction and other generous tax benefits granted to homeowners.

A presidential commission on tax reform will take up the subject for the first time Tuesday. "Everything's on the table," said Charles Rossotti, a panel member who was commissioner of Internal Revenue from 1997 to 2002.

The mortgage-interest deduction will save homeowners $61.5 billion this year. No one expects the commission to recommend its elimination. Instead, the panel is likely to consider scaling back the deduction for mortgage interest on second homes or home-equity loans, and changing the deduction for property taxes, among other things.

The growth in the welfare state means taxes have to go up.What a tempting target, things like second homes.You might want to read the whole article before you get long some more real estate.