House Won't Accept Repeal of Local Tax Break, Brady Says

Monday, 13 November 2017, 03:39:51 AM. The House of Representatives wouldn’t accept a tax bill that, like the Senate’s, eliminates deductions for all state and local taxes, the chairman of the House’s tax-writing committee said.
The House of Representatives wouldn’t accept a tax bill that, like the Senate’s, eliminates deductions for all state and local taxes, the chairman of the House’s tax-writing committee said. The comments from House Ways and Means Chairman Kevin Brady show that although both the House and Senate are moving forward with plans to overhaul the U.S. tax code under tight, self-imposed deadlines, the path forward remains difficult because of differences in their legislation. “I’m committed to” a compromise that would preserve the deduction for state and local property taxes, Brady said on “Fox News Sunday.” The House bill would eliminate existing federal tax breaks for state and local income or sales taxes, but preserve a property-tax deduction capped at $10,000. Combined with a new family-tax credit and a deduction for mortgage interest for new purchases that would be capped at $500,000 of debt, the House bill “gets the job done,” Brady said. The Senate plan proposes to eliminate federal tax breaks for all state and local levies, including property taxes. That provision will almost certainly meet resistance from Republican House members in high-tax states such as New York, New Jersey and California. They pushed Brady to keep the property-tax deduction in the House bill. “What we’ve worked so carefully with our lawmakers from New York and California and New Jersey is to make sure we deliver this relief,” Brady said. Representative Peter King, a Long Island Republican who has been...Read more
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