US House will reject total elimination of state and local tax deductions: Brady

US House will reject total elimination of state and local tax deductions: Brady


Congressional Democrats have criticized the Republican plans as lopsided, favoring wealthy Americans and corporate interests.

“Both 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,” Senate Democratic leader Chuck Schumer said.

“Republicans should go back to the drawing board and fully restore the SALT deduction,” he said in a statement.

Some analyses show that some Americans would see a tax increase under both plans. Treasury Secretary Steve Mnuchin acknowledged that on CNN’s “State of the Union” on Sunday, although he said most middle-class families would be better off.

“For most people — and, again, it may not be 100 percent, but by far the majority — both the House and Senate version provide middle-income tax relief,” he said.

White House economic adviser Gary Cohn said both plans adhere to Trump’s two main objectives in overhauling the tax code: a tax cut for middle-income Americans and a deep reduction in the corporate tax rate to make U.S. businesses competitive.

“That’s how we’re going to grow the economy. That’s how we’re going to pay for the tax bill,” Cohn said on Fox’s “Sunday Morning Futures.”

A report by Congress’ Joint Committee on Taxation estimated earlier this month that the House bill could raise taxes on as many as 38 million people who earn between $20,000 and $40,000 per year, beginning in 2023.

Republican Representative Peter King has fiercely opposed the elimination of the SALT deduction, saying many in his home state of New York earning $300,000 a year were hardworking, two-income families facing a very high cost of living.

“They’re not hedge fund people,” King said on “Sunday Morning Futures.” “These are hardworking people and they’re going to get screwed by this bill.”



Source : cnbc.com

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