Republicans push ahead with US tax bill as Democrats sharpen attacks

WASHINGTON: Republican lawmakers on Monday began revising their proposed overhaul of the US tax code, as Democrats pointed to the loss of popular deductions as proof the legislation was an assault on the middle class.

A draft bill unveiled last week by Republicans in the House of Representatives, if enacted, would be the biggest restructuring of the tax system since the 1980s and the first major legislative victory of the Trump presidency.

Although Republicans generally support the bill’s broader themes, including a sharp cut in the corporate income tax, there are rumblings of dissent over other elements, including repeal of the deduction for state and local income tax (SALT) payments.

New York, California and other high-tax states would be hard hit by the removal of that deduction, a fact seized upon by Democrats to bolster their argument that Trump’s plan is a gift to the wealthiest Americans and the corporate sector.

“There are a lot of people expecting a tax cut who will be big losers under this bill,” Representative Bill Pascrell of New Jersey, a Democrat on the House Ways and Means Committee, said as the tax-writing panel convened to consider the bill.

The White House argues that tax cuts are needed to boost economic growth and create jobs. — Reuters