THE TAIL THAT WAGS THE UNICORN RIDER:

White House Rethinks Tax Hikes: Obama Open to Revising Plan to Cap Breaks on Mortgage Interest and Donations (JOHN D. MCKINNON and MARTIN VAUGHAN, 3/04/09, WSJ)

President Barack Obama is meeting strong Democratic Party resistance to his proposal to reduce tax deductions enjoyed by upper-income Americans and is signaling he may drop the idea.

Mr. Obama in his budget blueprint last week proposed a cap on itemized deductions for mortgage interest and charitable donations to help pay for his health-care overhaul. The plan would cost wealthier taxpayers about $318 billion in new taxes over 10 years, according to government estimates.

But after objections from Democratic lawmakers, Treasury Secretary Timothy Geithner indicated Wednesday that the administration was willing to consider dropping or modifying the proposal.

As power shifts to the Hill.

Posted by Orrin Judd at March 4, 2009 10:30 PM