THE CHAIRMAN of the House’s tax-writing committee says he’s confident that chamber won’t go along with the Senate’s proposal to eliminate the deduction for property taxes.
WASHINGTON — The chairman of the House’s tax-writing committee said Sunday he’s confident that chamber won’t go along with the Senate’s proposal to eliminate the deduction for property taxes, setting up a major flashpoint as Republicans aim to put a tax-cut bill on President Donald Trump’s desk before Christmas.
The GOP is moving to push forward on the first rewrite of the U.S. tax code in three decades, but key differences promise to complicate the effort. Among the biggest differences in the two bills that have emerged: The House bill allows homeowners to deduct up to $10,000 in property taxes while the Senate proposal unveiled by GOP leaders last week eliminates the deduction.
The deduction is particularly important to residents in states with high property values or tax rates, such as New Jersey, Illinois, California and New York. Rep. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee, said that he worked with lawmakers in those states to ensure the House bill “delivers this relief” and that he was committed to ensuring it stays in the final package.
“It’s important to make sure that people keep more of what they earn, even in these high-tax states,” Brady said on “Fox News Sunday.”
Both the House and Senate bills would eliminate deductions for state and local income taxes and sales taxes paid. Sen. Chuck Schumer, D-N.Y., said in response to Brady’s pledge that Republicans should fully restore what is referred to as the SALT deduction.
A key feature of both bills is a reduction in the corporate tax rate from 35 percent to 20 percent. But the Senate version delays the cut for one year. Treasury Secretary Steven Mnuchin said on CBS’s “Face The Nation” that he was confident the issue would not be a stumbling block to an agreement.
Meanwhile, more than 400 American millionaires and billionaires are sending a letter to Congress this week urging Republican lawmakers not to cut their taxes. The wealthy Americans say the GOP is making a mistake by reducing taxes on the richest families at a time when the the nation’s debt is high and inequality is back at the worst level since the 1920s.
The letter was put together by Responsible Wealth, a group that advocates for progressive causes.