I am doubtful Obama's MID cut-back would affect California much

President Obama has proposed reducing the rate at which households with incomes above $250,000 would benefit from the Mortgage Interest Deduction. The value of the deduction would be reduced from as much as 35 percent to 28 percent.

But here in California, where state income taxes are very high, I calculate that the vast majority of those with incomes in excess of $250,000 pay the Alternative Minimum Tax, which has a top marginal tax rate of 28 percent. (I base this claim on using the NBER TAXSIM model). This means most Californians would not be affected by the proposed change.

Perhaps I am missing something here--if so I would appreciate enlightenment.