According to today’s Wall Street Journal, Bush’s tax overhaul commission will recommend capping the value of the mortgage interest deduction at $300,000 (the current limit is $1 million). This may include grandfather clauses for already-purchased homes (hey, your capital value still falls and mobility is limited) or a gradual introduction over ten years. There is also talk of ending the preferential tax treatment for employer-supplied health insurance and distributing tax breaks more evenly across all income levels. The commission is expected to recommend against a value-added tax. The report is due November 1. Of course whether the recommendations will pass is another matter.
Addendum: Andrew Samwick offers more.