Here's a look at the Impact of changing tax expenditures on housing market, health care, charities, state budgets and deficit reduction unknown and should be evaluated through tax reform, not lame duck:

Revenue Impact: Ending Upper Income Tax Cuts

•    Ending the Bush tax cuts for households with incomes above $250,000 would raise nearly $1 trillion over 10 years and have a relatively minor short-term economic effect.

Economy Experienced Extraordinary Growth with Upper-income Tax Rates at 39.6%

•    We know how the economy responded when tax rates for high-income individuals were at Clinton-era levels: 22.5 million jobs were created during his presidency.  We know that rates at those levels are not themselves a bar to broad economic expansion and job creation, and we know with certainty that such a policy will not have an adverse effect on the middle class.

•    All major deficit reduction plans start with the top tax rates at 39.6 percent.

Consequences of Limiting Deductions: Economic Effects Could Be Far-Reaching, Need Thorough Analysis

•    Limiting itemized deductions and other tax expenditures should be thoroughly assessed in the context of tax reform next year, when there is an opportunity to fully understand the effects on the economy, the housing market and charitable giving, etc.

•    The three largest itemized deductions are for mortgage interest paid, state and local taxes paid, and charitable contributions.  There are good policy reasons for each of these tax preferences, and changes should be pursued through tax reform, not the lame duck, where we can consider the direct and indirect effects of limiting them before we rush headlong into a policy that might do further damage to the economy and the middle class.