The pay-for-performance model is blessed by tax laws that prevent companies from deducting as an expense any portion of an executive salary in excess of $1 million but place no limit on the deductibility of so-called performance-based pay.
Changes include capping the mortgage interest deduction at $750,000 and reducing the deductibility of property taxes.
First, the House bill eliminates the deductibility of interest payments on student loans a deduction that more than 12 million people used in 2015, according to the New York Times.
It expressed no view on the notion of limiting the deductibility of sole-proprietors' losses.
The bottom line: The elimination of the tax deductibility of alimony means, in most cases, the government will no longer help support the spouse receiving the income, usually the former wife and the couple's children.
If the deductibility of the HSA is attractive, making all health insurance premiums fully deductible is more so.
A key attraction is the deductibility of the interest on the first $100,000 of a second mortgage, no matter what you do with the proceeds.
Restaurants want increased deductibility of business meals.
Not mentioned was eliminating the tax deductibility of corporate advertising.
Labor dislikes eliminating the deductibility of union dues.
