Washington — A GOP plan to reduce the deficit would limit tax deductions for mortgage interest, charitable donations and state and local taxes. Some workers could see their employer-provided health benefits taxed for the first time, though aides cautioned that the plan is still fluid.
The provisions are part of a plan by Republican Sen. Pat Toomey, who serves on the debt supercommittee working to reduce government borrowing.
The plan would limit tax breaks claimed by people who itemize their deductions and use the additional revenue to lower overall tax rates and to reduce the budget deficit.
Republicans say the plan would raise $290 billion over the next decade. Democrats say it would cut taxes for the wealthy, increase taxes for the middle class and generate less revenue than advertised.