As part of President Obama's Fiscal Year (FY) 2012 budget proposal submitted to Congress on February 14, 2011, the ability for individuals making over $200,000 per year and couples making more than $250,000 per year to deduct their mortgage interest has been limited. The proposal calls for taxpayers in the 33 percent and 35 percent tax brackets to be limited in deducting their mortgage interest payments down to those at the 28 percent rate or below. The President's budget proposal is now before Congress. The National Association of REALTORS® (NAR) will be analyzing this proposal and working with the Congress to fight for the continued ability for mortgage interest to be fully deducted by all homeowners who currently have the ability to do so.
Copied from the NJAR website at http://www.njar.com/government_affairs/index.php