Among the proposed changes include a recommendation to reduce the mortgage interest deduction (MID) currently offered to homeowners as an incentive to own a home. The ability of homeowners to deduct the interest paid on mortgages is a powerful incentive for home ownership and has been one of the simplest provisions in the federal tax code for more than 80 years.

The commission’s proposal would change the MID to a 12 percent non-refundable tax credit, with no credit offered for mortgages higher than $500,000 nor for interest on a second residence or home equity.

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