RI Lawmakers Talk of "Fiscal Cliff" Compromises - ABC6 - Providence, RI and New Bedford, MA News, Weather

RI Lawmakers Talk of "Fiscal Cliff" Compromises

by Mark Curtis, ABC 6 Chief Political Reporter 

mcurtis@abc6.com 

Suddenly the two political parties are talking of a deal, with some Republicans now saying they'd allow taxes to rise on people making over $250 thousand dollars per year.

In exchange Democrats might agree to additional government spending cuts.

Sen. Jack Reed, (D-RI) said, "Well it's encouraging to hear that some of my Republican colleagues are beginning to recognize we need a balanced approach – both revenue and expenditure cuts. That could be the basis of a compromise."

But Senator Reed points out Democrats have already put one trillion dollars in spending cuts on the table.

ABC Chief Political Reporter Mark Curtis said, "One thing Congress is looking at is putting a limit on how much people can deduct on their taxes for charitable contributions, say putting limits on how much they can write off for giving money to their church."

And it's not just charitable deductions.

Right now you can deduct all of the  mortgage interest you pay on your home.

That might be limited to say 30 thousand dollars per year under the new budget deal.

Congressman Jim Langevin opposes that saying it could hurt middle class homeowners.

Langevin said, "It's a way  people are able to save and build equity in their home and such, and taking away the mortgage interest deduction, I don't think is the best way to go."

Some realtors worry about cutting the mortgage deduction,  fearing it could cause a drop in home sales.