Income Tax Deductions
One way for the federal government to either raise revenue or lower tax rates is to limit taxpayer deductions. The three biggest tax breaks for taxpayers are the following: employer-provided health insurance, mortgage interest deduction, and retirement plan contributions. According to the Tax Policy Center in Washington, only ~ 12% of taxpayers making < $63,000 itemize versus 90% of those taxpayers with earnings > $150,000. The top 5% of taxpayers (those earning $200K+) have itemized deductions representing ~ 13% of their income.