The chairman of the House of Representatives’ tax-writing committee said on Sunday he would not accept the total elimination of state and local tax deductions in the final tax reform bill.
“I am convinced that this is where we’re going to end up,” House Ways and Means Committee Chairman Kevin Brady said in an interview with “Fox News Sunday.”
Asked if he could guarantee that to Republican members of Congress facing re-election next year in Democratic-leaning states, he said, “I can.”
The current federal deduction for state and local income and sales taxes, or SALT, is a main difference between the House version of a tax reform plan and a Senate proposal revealed last week.
Lawmakers in the two chambers must resolve their differences on the biggest overhaul of U.S. tax law in decades before reaching their goal of enacting the legislation by the end of the year.
Brady drew his battle lines on the entire elimination of the SALT deduction, a major concern for taxpayers in high-tax, typically Democratic-leaning states such as California, New York, New Jersey, Connecticut and Massachusetts.
Asked if the House would not accept a total elimination of SALT deduction if it is approved by the Senate, Brady said: “That’s what I’m saying.
“We want people to keep more of what they earn regardless of where they live, including in these high-tax states,” he said.
The Senate plan would repeal the SALT deduction entirely. The House bill would repeal it only for state and local income and sales taxes, but preserve it for property tax up to $10,000.