The Wall Street Journal reports that the President's Advisory Panel on Federal Tax Reform is considering eliminating five popular deductions in order to fund AMT repeal:
Employer-Provided Health Insurance
State and Local Taxes
Home-Mortgage Interest
401(k) Contributions
Charitable Contributions
Meanwhile, a compromise is emerging on estate tax reform: A key Democrat says we are looking at "a $4 - $6 million exemption and a 15% - 35% tax rate. Primary Republican negotiator Jon Kyl (R-Ariz) is sticking with his call for an $8 million exemption and 15% tax rate." Both are half a loaf. The revenue difference between the current $1.5 million exemption and even an $8 million exemption is modest. But, the revenue effects associated with reductions below the current 47% top estate tax rate are huge.
Both from the Tax Profs Blog.