Tags: tax reform | deductions | gop

Tax Reform Causes Worry For Some in GOP Over Erasure of Deductions

Tax Reform Causes Worry For Some in GOP Over Erasure of Deductions
(AP)

By    |   Friday, 29 September 2017 12:10 PM

The GOP's tax reform plan is facing a big hurdle that threatens to sink the effort before it gets much traction.

As The Wall Street Journal notes, a proposal in the plan to do away with deductions for state and local taxes is already generating discussion as lawmakers try to figure out how to make Republicans in states with high taxes — such as New York and New Jersey — sign on with the tax reform plan.

"The members with concerns from high-tax states have to be accommodated. This has to be dealt with," Rep. Peter Roskam, R-Ill., told the Journal.

For 30 years, taxpayers have been able to deduct property taxes, along with either state income or state sales taxes, on their annual returns. Erasing the ability to do that would help Republicans pay for their tax reform proposal that would cut the federal income tax rate for most Americans and streamline the number of tax brackets from seven to three.

House Ways and Means Committee Chairman Rep. Kevin Brady, R-Texas, told the Journal the decision to erase the aforementioned deductions makes up for the overall tax cuts.

"It's crucial that we deliver tax relief for every American regardless of where they live, including in those states that have high state and local taxes," said Brady, who played a crucial role in writing the tax proposal.

"We will have a choice between keeping that deduction for a few, or lowering tax rates for every American."

Brady told Fox News this week that the tax plan delivers the most benefits to middle-class Americans.

Rep. John Faso, R-N.Y., told The New York Times he is worried about how erasing those deductions would change things for his constituents.

"The state and local tax piece is very concerning, because we're already a donor state to Washington, and this would exacerbate that problem," he said.

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The GOP's tax reform plan is facing a big hurdle that threatens to sink the effort before it gets much traction.
tax reform, deductions, gop
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2017-10-29
Friday, 29 September 2017 12:10 PM
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