A suggestion by some Democrats that eliminating tax deductions for mortgage interest and charitable contributions could be part of a fiscal cliff deal is raising the specter of significant harm for the middle class, according to some experts.
And they are saying the church is at risk as well.
Some believe that President Obama may support eliminating these deductions despite repeated assertions during his campaign that he plans to protect the middle class.
The Tax Policy Center argues that households earning more than $250,000 (defined as wealthy by the Obama administration) realize an annual tax savings of around $5,460 from taking advantage of their mortgage deduction. Compare that with the approximate $91 annual tax savings for households making less than $40,000 annually. Experts also argue that earners making less than $250,000 per year will get hurt more than low-income earners.