Chairman: House won’t nix property tax deduction
Washington — The chairman of the House’s tax-writing committee said Sunday that 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 in the House and Senate aim to put a tax cut bill on President Donald Trump’s desk before Christmas.
The GOP is moving urgently 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 entire 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. Congressman Kevin Brady, chairman of the House Ways and Means Committee, said he worked with lawmakers in those states to ensure the House bill “delivers this relief,” and he was committed to ensuring it stays in the final package.
“It’s important to make sure that people keep more of what they learn, even in these high-tax states,” Brady, R-Texas, said during an appearance on “Fox News Sunday.”
Both the House and Senate bill would eliminate deductions for state and local income taxes and sales taxes paid. Sen. Chuck Schumer, D-N.Y., said Republicans should fully restore what is referred to as the SALT deduction, or millions of middle-class families would end up paying higher federal income taxes, not less.
“The House’s so-called ‘compromise’ would be saying to the middle class we’ll only chop off four of your fingers instead of all five,” Schumer said in a statement.