House won't accept tax plan's elimination of state, local deductions: Brady
ââWASHINGTON â"â Theâ powerful âRepublican âleader of the âHouse âtaxâ-âwriting committee saidâ ââhe wonât accept the Senateâs plan to fully eliminate the state and local tax deduction thatâs vital to states like New York and New Jersey.
Rep. Kevin Brady (R-Texas), chairman of the House Ways and Means Committee, said he believes the final tax bill will include his compromise to keep some property tax deductions.
âIâm convinced that this is where weâre going to end up,âââ Brady told âFox News Sunday.â
State and local tax deductions (SALT) have been a sticking point on tax reform legislation that âPresident Târump wants signed into law this year.
The House is expected to vote on its plan this week that would eliminate the deductibility of all state income and sales taxes, but preserve property tax deduc tibility capped at $10,000.
The compromise was needed to get enough moderate âHouse âRepublicans from high-tax states like New York, New Jersey, California and Illinois on board.
But in the Senate, where the states most affected are represented all by Democrats, the plan would fully eliminate SALT deductions.
Minority Leader Sen. Chuck Schumer (D-NY) warned House Republicans that if the Senate passes its version, itâs unlikely the Bradyâs compromise plan will be adopted when the two chambers work out the final product in conference committee.
âThe Houseâs so-called âcompromiseâ would be saying to the middle class weâll only chop off four of your fingers instead of all five,â Schumer said in a statement Sunday.â ââBoth the House and the Senate bills would raise taxes on millions of middle-class families, particularly in the suburbs, while providing a huge giveaway to corporations and the wealthy.â
The Senate Finance Commi ttee begins its mark-up on the tax bill this week.
A vote on the House bill is expected before Thanksgiving.
Chief White House Economic Adviser Gary Cohn said heâs âconfidentâ the plan has the votesâ.
Asked whether he expects a mass exodus from New York if the tax reform plan passes, Cohn ââtold Fox Newsâ âSunday Morning Futuresâ âthat âhe wonât be surprised if people move to states without incomes taxes.
âThatâs been happening already,â Cohn said. âIf you look at the Texases and the Floridas â" those states have been growing at a much more rapid rate.â
Rep. Peter King (R-L.I.) said Bradyâs so-called compromise plan isnât good enough and he wants state and local tax deductions restored.
King accused the Republicans of engaging in âclass warfareâ by asking the ârichâ to pay more, but defining wealthy as households that could make $400,000 as civil servants and first responders in areas around New York Cityâ.â
âThey werenât born with a silver spoon in their mouth,â King told âSunday Morning Futures.â âThese are hard-working people and they are going to get screwed by this bill. Iâm not going to vote for it.
âI didnât run for re-election so I can go to my constituents and say I raised your taxes to help people living in other states that already get subsidized by New York.â
Last week Treasury Secretary Steven Mnuchin told the Economic Club of New York: âFor people who make over $1 million in the high tax states, there will be a tax increaseâ ââ¦ â âthis is not about tax cuts for the rich.â
Mnuchin said Sunday on CNNâs âState of the Unionâ that âmostâ of the middle class will get a tax break, but acknowledged âit may not be 100 percent.âSource: Google News