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Congressional Budget Office delivered its latest revenue-raising options for Senate and House consideration as they write this fall’s tax and budget legislation.

Tucked away in the report are several incendiary plans that could - if adopted - cost homeowners billions of dollars. Though not formal legislative proposals, the CBO’s options represent a handy fiscal menu for legislators to pick and choose from to reduce the deficit - now at unprecedented levels - or to pay for new programs they might want to advance.

Tops on the CBO’s hit list for housing: Slash deductions for homeowner mortgage interest from the present .1 million limit to 0,000, phased in with 0,000 annual reductions starting in 2013 and extending to 2019. Under current law, taxpayers can write off mortgage interest on their principal home debt up to million, and on home equity debt up to 0,000.

Under the CBO’s option, that maximum mortgage debt amount would shrink yearly until it hit 0,000. Over a 10-year period, this change alone would boost federal tax collections by an estimated billion.

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