Republicans Are Reconsidering Full Repeal of State and Local Tax Deduction
- 7 years ago
Republicans Are Reconsidering Full Repeal of State and Local Tax Deduction
Representative Mark Meadows, Republican of North Carolina and the chairman of the hard-line House Freedom Caucus, suggested
that as a compromise, the deduction for state and local taxes could be retained but capped at a certain amount, in order to provide “a fair deduction but not one that is disproportionately enjoyed by people in New York or New Jersey.”
“That way, North Carolina would be on parity with other states,” he said.
The White House and Republican lawmakers are considering alternatives to an outright repeal, including allowing taxpayers to choose between deducting their mortgage interest or state
and local taxes, a limit on the deduction or a special tax break for middle-class families that live in areas with high property taxes.
She referred reporters to Mr. Brady’s comments on Monday, when he told a press gathering
that party leaders were still crafting the details of their plan, and “listening very closely to all our lawmakers, Republicans and Democrats alike, who are in high-tax states.”
Preserving the deduction entirely would raise the cost of the Republican tax plan by more than $1 trillion over 10 years
and an additional $2.3 trillion over the following decade, according to an analysis by the Tax Policy Center, a nonpartisan think tank.
While he is committed to getting the corporate tax rate to 20 percent, Mr. Cohn said that the deduction was not a “red line.”
The framework called for cutting the corporate tax rate to 20 percent from 35 percent, creating a
new lower 25 percent tax rate for “pass through” businesses and doubling the standard deduction.
Representative Chris Collins, Republican of New York, said in an interview on Tuesday
that party leaders had assured him “there’s not going to be full repeal” of the state and local tax deduction.
Representative Mark Meadows, Republican of North Carolina and the chairman of the hard-line House Freedom Caucus, suggested
that as a compromise, the deduction for state and local taxes could be retained but capped at a certain amount, in order to provide “a fair deduction but not one that is disproportionately enjoyed by people in New York or New Jersey.”
“That way, North Carolina would be on parity with other states,” he said.
The White House and Republican lawmakers are considering alternatives to an outright repeal, including allowing taxpayers to choose between deducting their mortgage interest or state
and local taxes, a limit on the deduction or a special tax break for middle-class families that live in areas with high property taxes.
She referred reporters to Mr. Brady’s comments on Monday, when he told a press gathering
that party leaders were still crafting the details of their plan, and “listening very closely to all our lawmakers, Republicans and Democrats alike, who are in high-tax states.”
Preserving the deduction entirely would raise the cost of the Republican tax plan by more than $1 trillion over 10 years
and an additional $2.3 trillion over the following decade, according to an analysis by the Tax Policy Center, a nonpartisan think tank.
While he is committed to getting the corporate tax rate to 20 percent, Mr. Cohn said that the deduction was not a “red line.”
The framework called for cutting the corporate tax rate to 20 percent from 35 percent, creating a
new lower 25 percent tax rate for “pass through” businesses and doubling the standard deduction.
Representative Chris Collins, Republican of New York, said in an interview on Tuesday
that party leaders had assured him “there’s not going to be full repeal” of the state and local tax deduction.