Republicans agree to keep local deduction in tax bill

WASHINGTON — House Republicans from high-tax states who threatened to sink President Donald Trump and the Republicans’ tax plan have wrung a key concession from GOP tax-writers, days ahead of a public rollout for the rapidly shape-shifting plan.

The breakaway lawmakers, from states such as New York and New Jersey, had threatened to sink the sweeping tax-cutting plan. The GOP House members have opposed the proposed elimination of the federal deduction for state and local taxes.

The head of the House tax-writing committee, Rep. Kevin Brady, R-texas, said Monday taxpayers will be able to continue to deduct local property taxes on their federal income tax returns.

Brady, who heads the House Ways and Means Committee, said in a statement, “At the urging of lawmakers, we are restoring an itemized property-tax deduction to help taxpayers with local tax burdens.”

The deduction for state income taxes, however, would be ended. The change means there would be three itemized deductions retained: for home mortgage interest, charitable donations and local property taxes.

But as one rebellion appeared quelled, another crack opened as the National Association of Home Builders withdrew its blessing.

The move added to threats against the legislation from Republicans with strong conservative views and defenders of 401(k) retirement savings plans.

The mounting opposition to the plan comes as House Republicans work behind closed doors on proposed legislation that they intend to unveil on Wednesday.