When I ran some calculations on the initial proposal, it seemed custom written to give us a huge tax break. No state income taxes here, low remaining mortgage, low remaining boat loan at a low rate, relatively low property taxes. Income too high to write off my wife's law school loan interest anyway. Income too high and too healthy to write off any medical expenses anyway. And just in the sweet spot for the maximum tax bracket break. Custom written for us. Therefore, it's going nowhere and if anything passes at all, it will look nothing like the initial proposal and generally make everything worse.
And there's my cheery prediction for the day.
If all the suggestions went through, I'd get a huge tax reduction and I'm the last person who should be getting one. The reality is that isn't going to happen though.
As to interest on second homes, all itemized deductions have been targeted now and really for a while. They talk about this one and that one. And one person favors this and one that and there are reasons to eliminate each of them and reasons not to eliminate them. There are consequences to each. I can argue both sides to all.
2nd home arguments.
Eliminate deduction. Why should we give benefits to people wealthy enough to have two homes?
Keep deduction. It stimulates construction and purchasing and is good for the economy.
Non taxable state and local bonds
Eliminate tax exclusion. Why should we exclude income that mainly the wealthy have?
Keep deduction. Without this deduction states and local governments would have to pay much higher interest on bonds, increasing the costs of roads, schools and more. Also, the supreme court long ago ruled that the federal government can't legally tax states or their payments.This is the one the states are ready to sue over.
It's just funny to hear some being argued about. You have one that is billions of dollars, then you have them wanting to eliminate the $250 credit teachers can take for money they spend on students and the classroom.
It's going to be interesting to follow but there's nothing that's going to happen anytime soon.