Cap of $25,000 on Deductions Would Cover 32% of Tax Cuts

Capping itemized tax deductions at $25,000 would generate $1.3 trillion, covering about 32 percent of the cost of Mitt Romney’s proposed income tax cuts for individuals, the nonpartisan Tax Policy Center said today.

The Republican presidential nominee has suggested a deduction cap as one option to offset the effect of his proposal to cut tax rates by 20 percent and repeal the estate tax and alternative minimum tax. During a debate last night with President Barack Obama, Romney suggested a $25,000 limit, which he said would apply to deductions and credits.