REV-05 ELIMINATE OR LIMIT DEDUCTIONS FOR MORTGAGE INTEREST

                                Annual Added Revenues
                                (Billions of dollars)             Cumulative
Addition to          -----------------------------------------    Five-Year
CBO Baseline         1994     1995      1996     1997     1998     Addition
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Eliminate Deductions
for Mortgage Interest 25.9     43.1      44.8     47.9     51.1      212.8

Reduce Maximum
Mortgage Principal
Eligible for Interest
Deductions to $300,000  0.9     2.3       2.7      3.1      3.5       12.5

Limit Deductions
to $12,000 per
Return (Single) or
$20,000 (Joint)        1.4      3.8       4.4      5.0      5.8       20.5

Limit Deductions
for Second Homes       0.2      0.3       0.3      0.3      0.3        1.4
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SOURCE:  Joint Committee on Taxation.

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