Millions would lose mortgage, gift write-offs under U.S. tax bill: studyWASHINGTON (Reuters) - Millions of households would no longer benefit from federal tax deductions for charity donations, mortgage interest payments and property tax under Republican tax plans being debated in the U.S. Congress, a think tank said on Thursday. The left-leaning Institute on Taxation and Economic Policy said that up to 29 million U.S. households now writing off donations, home loan interest and state and local property tax payments would no longer be able to do so under either of the two plans. While all three deductions are maintained in some form in one or both of the rival Senate and House of Representatives bills, far fewer taxpayers could take advantage of them because of other proposed changes, said the Washington-based group. “The House and Senate have voted to fundamentally transform those write-offs in ways that most people don’t understand,” said Carl Davis, research director of the institute. Under the bills, the mortgage interest and charitable deductions would be “worthless for most people”, Davis said. “Less than one in 10 people is going to be able to write-off their donations to their churches or local nonprofits if this legislation is signed into law.” President Donald Trump and congressional Republicans are racing to complete a sweeping tax code overhaul by the end of 2017. If they can, it would represent their first major legislative achievement since Trump took power in January. Trump has promised to simplify the tax code, part of which involves ending tax breaks for special interests. That goal is encountering resistance from interests that would be hurt. The Senate and the House have approved separate tax bills and are now trying to craft one unified bill to send to Trump for his signature.  As drafted, the two bills call for roughly doubling the “standard deduction,” a key part of the tax code, to $12,000 for individuals and $24,000 for married couples filing jointly. The standard deduction is a fixed dollar amount, claimed by about two-thirds of taxpayers, that reduces taxable income. Instead of claiming the standard deduction, about one-third of taxpayers, mostly high-earning Americans, itemize deductions. Doing that is worthwhile, in most cases, if the total of itemized deductions exceeds the standard deduction. Both the Senate and House bills also curtail the deduction for state and local tax (SALT) payments, with the House preserving it for state and local property taxes up to $10,000. Tax experts estimate that the combination of doubling the standard deduction and curtailing the SALT deduction would mean that far fewer Americans would itemize. Since itemizing is the only way to claim the deductions for charity, mortgage interest and state and local tax payments, claims for those deductions are also expected to plummet, especially among middle-class Americans. The institute estimated that the percentage of U.S. households writing off charitable donations, under the Republican plans, would fall to 8 percent from 26 percent. A similar decline would be seen in households claiming the mortgage interest deduction, it said. “The mortgage interest deduction would be left in place for precisely the families who are least likely to need to the deduction to become homeowners. More than three-fourths of middle-income families claiming a mortgage interest deduction today would no longer receive that deduction,” it said.  “There are good reasons to consider reforming itemized deductions to improve their effectiveness or fairness. But the House and Senate’s approach to that task leave much to be desired,” the institute said. (The story is refiled to correct last name in second reference to Davis from David in fifth paragraph.) politicsNews
millions would lose mortgage gift tax bill studywashington reuters millions households would longer benefit federal tax deductions charity donations mortgage interest payments property tax republican tax plans debated congress think tank said thursday the institute taxation economic policy said million households writing donations home loan interest state local property tax payments would longer able either two plans while three deductions maintained form one rival senate house representatives bills far fewer taxpayers could take advantage proposed changes said group the house senate voted fundamentally transform ways people understand said carl davis research director institute under bills mortgage interest charitable deductions would worthless people davis said less one people going able donations churches local nonprofits legislation signed president donald trump congressional republicans racing complete sweeping tax code overhaul end if would represent first major legislative achievement since trump took power january trump promised simplify tax code part involves ending tax breaks special interests that goal encountering resistance interests would hurt the senate house approved separate tax bills trying craft one unified bill send trump signature as drafted two bills call roughly doubling standard deduction key part tax code individuals married couples filing jointly the standard deduction fixed dollar amount claimed taxpayers reduces taxable income instead claiming standard deduction taxpayers mostly americans itemid deductions doing worthwhile cases total itemid deductions exceeds standard deduction both senate house bills also curtail deduction state local tax salt payments house preserving state local property taxes tax experts estimate combination doubling standard deduction curtailing salt deduction would mean far fewer americans would itemid since itemizing way claim deductions charity mortgage interest state local tax payments claims deductions also expected plume especially among americans the institute estimated percentage households writing charitable donations republican plans would fall percent percent a similar decline would seen households claiming mortgage interest deduction said the mortgage interest deduction would left place precisely families least likely need deduction become homeowners more families claiming mortgage interest deduction today would longer receive deduction said there good reasons consider reforming itemid deductions improve effectiveness fairness but house senate approach task leave much desired institute said the story refined correct last name second reference davis david fifth paragraph politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Millions would lose mortgage, gift write-offs under U.S. tax bill: studyWASHINGTON (Reuters) - Millions of households would no longer benefit from federal tax deductions for charity donations, mortgage interest payments and property tax under Republican tax plans being debated in the U.S. Congress, a think tank said on Thursday. The left-leaning Institute on Taxation and Economic Policy said that up to 29 million U.S. households now writing off donations, home loan interest and state and local property tax payments would no longer be able to do so under either of the two plans. While all three deductions are maintained in some form in one or both of the rival Senate and House of Representatives bills, far fewer taxpayers could take advantage of them because of other proposed changes, said the Washington-based group. “The House and Senate have voted to fundamentally transform those write-offs in ways that most people don’t understand,” said Carl Davis, research director of the institute. Under the bills, the mortgage interest and charitable deductions would be “worthless for most people”, Davis said. “Less than one in 10 people is going to be able to write-off their donations to their churches or local nonprofits if this legislation is signed into law.” President Donald Trump and congressional Republicans are racing to complete a sweeping tax code overhaul by the end of 2017. If they can, it would represent their first major legislative achievement since Trump took power in January. Trump has promised to simplify the tax code, part of which involves ending tax breaks for special interests. That goal is encountering resistance from interests that would be hurt. The Senate and the House have approved separate tax bills and are now trying to craft one unified bill to send to Trump for his signature.  As drafted, the two bills call for roughly doubling the “standard deduction,” a key part of the tax code, to $12,000 for individuals and $24,000 for married couples filing jointly. The standard deduction is a fixed dollar amount, claimed by about two-thirds of taxpayers, that reduces taxable income. Instead of claiming the standard deduction, about one-third of taxpayers, mostly high-earning Americans, itemize deductions. Doing that is worthwhile, in most cases, if the total of itemized deductions exceeds the standard deduction. Both the Senate and House bills also curtail the deduction for state and local tax (SALT) payments, with the House preserving it for state and local property taxes up to $10,000. Tax experts estimate that the combination of doubling the standard deduction and curtailing the SALT deduction would mean that far fewer Americans would itemize. Since itemizing is the only way to claim the deductions for charity, mortgage interest and state and local tax payments, claims for those deductions are also expected to plummet, especially among middle-class Americans. The institute estimated that the percentage of U.S. households writing off charitable donations, under the Republican plans, would fall to 8 percent from 26 percent. A similar decline would be seen in households claiming the mortgage interest deduction, it said. “The mortgage interest deduction would be left in place for precisely the families who are least likely to need to the deduction to become homeowners. More than three-fourths of middle-income families claiming a mortgage interest deduction today would no longer receive that deduction,” it said.  “There are good reasons to consider reforming itemized deductions to improve their effectiveness or fairness. But the House and Senate’s approach to that task leave much to be desired,” the institute said. (The story is refiled to correct last name in second reference to Davis from David in fifth paragraph.) politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: millions would lose mortgage gift tax bill studywashington reuters millions households would longer benefit federal tax deductions charity donations mortgage interest payments property tax republican tax plans debated congress think tank said thursday the institute taxation economic policy said million households writing donations home loan interest state local property tax payments would longer able either two plans while three deductions maintained form one rival senate house representatives bills far fewer taxpayers could take advantage proposed changes said group the house senate voted fundamentally transform ways people understand said carl davis research director institute under bills mortgage interest charitable deductions would worthless people davis said less one people going able donations churches local nonprofits legislation signed president donald trump congressional republicans racing complete sweeping tax code overhaul end if would represent first major legislative achievement since trump took power january trump promised simplify tax code part involves ending tax breaks special interests that goal encountering resistance interests would hurt the senate house approved separate tax bills trying craft one unified bill send trump signature as drafted two bills call roughly doubling standard deduction key part tax code individuals married couples filing jointly the standard deduction fixed dollar amount claimed taxpayers reduces taxable income instead claiming standard deduction taxpayers mostly americans itemid deductions doing worthwhile cases total itemid deductions exceeds standard deduction both senate house bills also curtail deduction state local tax salt payments house preserving state local property taxes tax experts estimate combination doubling standard deduction curtailing salt deduction would mean far fewer americans would itemid since itemizing way claim deductions charity mortgage interest state local tax payments claims deductions also expected plume especially among americans the institute estimated percentage households writing charitable donations republican plans would fall percent percent a similar decline would seen households claiming mortgage interest deduction said the mortgage interest deduction would left place precisely families least likely need deduction become homeowners more families claiming mortgage interest deduction today would longer receive deduction said there good reasons consider reforming itemid deductions improve effectiveness fairness but house senate approach task leave much desired institute said the story refined correct last name second reference davis david fifth paragraph politicsnews