New House Bill Proposed On Itemized Deductions

, Posted: Tue, April 2 2013 at 10:42 PM, Updated: Fri, April 5 2013 at 8:48 AM

It's April and that means it's tax time. For those who have filed or are still in the process of filing their taxes, there is often one basic question, standard or itemized deduction. But that may no longer be an option if some Oregon legislators have their way.  NBC5's Laura Cavanaugh reports.

Itemized deductions could be a thing of the past. Oregon legislators are considering a bill introduced by Oregon House Speaker, Tina Kotek. House Bill 2001 would essentially eliminate many federal
itemized deductions that count against state income taxes. Those include medical expenses, charitable contributions and home mortgage interest and that's a proposal met with disbelief by many.

Colin Mullane with the Rogue Valley Association of Realtors says the mortgage interest deduction has been a fundamental incentive to purchase a home since the early 1913.  In fact, a recent study reveals more than 75% of homeowners utilize the deduction.

One, if taken away, could have a crippling effect. House Republicans argue House Bill 2001 would raise taxes on nearly every Oregonian. And with fewer loopholes to offset those taxes, many fear
what it would to do a housing market that has just now rebounded in the last year.

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