Limiting Itemized Deductions Would Hit Wealthiest The Hardest
A new CNNMoney analysis shows a limit on itemized deductions would overwhelmingly affect the wealthy. The analysis shows their tax burdens would go up by an average of 14-thousand dollars each year. The reason for that is simple: taxpayers who earn 250-thousand dollars or more each year almost always itemize their taxes.
The analysis of IRS data shows nearly 97-percent of those Americans itemize their taxes. The number is much less for those in the 30-thousand to 50-thousand-dollar bracket; less than 30-percent of them itemize.
The most popular deduction among wealthier Americans was for state and local income taxes. Meanwhile, home mortgage interest is a popular deduction among middle-class taxpayers.