Trump's tax cuts move a step closer
- Author: Eleanor Harrison Oct 28, 2017,
Oct 28, 2017, 0:48
They can write off their property taxes as well as their state and local income taxes or general sales taxes.
Frelinghuysen - who has a target on his back as Democrats seek to unseat him in 2018 - is the chair of the House Appropriations Committee.
In New York, taxpayers would pay an average of an additional $5,300 in federal income taxes a year without the SALT deduction, Cuomo's office said in a separate statement. Republicans have yet to introduce a tax reform bill, instead laying out a framework. My twelve bills are done and through the House.
The longer tax reform languishes on Capitol Hill, the more time K Street will have to nitpick this legislation to death. Some simple calculations were telling us that some middle or upper-middle-class taxpayers could have been subject to a tax hike, if the tax plan eliminated big deductions for the middle class while keeping the 25 percent rate the same.
If Republicans in Congress really want to get Americans to save more, there are three easy changes the government could make that are widely endorsed by many experts, including Richard Thaler, victor of this year's Nobel Prize in economics.
The budget vote was close: It was adopted by a margin of 216 to 212, as 20 Republicans joined all Democrats in voting against it - an indication of just how challenging it might be for Republicans to pass the most sweeping tax overhaul in decades. In April, Gov. Chris Christie said that a loss of SALT deductions could hurt states like New Jersey.
Because of its importance to areas with higher state and local taxes, members from those areas are resistant to repealing the SALT.
"We had passed a budget that was conservative; it was responsible and it cut over $200 billion in spending", Gaetz said.
"The Ryan-McConnell-Trump tax plan is a giveaway to billionaires, and it's paid for by New Jersey families who will lose their critical state and local tax deduction", Norcross said in a statement.
"He'd like to raise the limits so people can save more in those plans".
LoBiondo has regularly departed from Trump, notably on health care. Kansas' plan led to several years of budget shortfalls.
Earlier this week, Trump promised the program would be left alone, and appeared to bolster that pledge Wednesday, saying he moved swiftly to end speculation that the tax-deferred program may be changed because it's vital for working Americans.
And a senior Republican senator signaled he'd vote for a tax bill even if it crimped 401 (k) tax benefits. "Bear in mind that's 20 no votes on GOP budget before leadership actually releases a bill with a bunch of unpopular but necessary tradeoffs", NBC's Benjy Sarlin tweeted.
Republicans, for their part, will argue that their tax cuts will magically pay for themselves by spurring greatly increased economic growth. "If there's not the tax cut that everyone is expecting, then the correction could be a whole lot more serious". "And that would be what would happen if SALT were eliminated".
At the moment, Republican lawmakers are nervous about plans to limit the deductibility of state and local taxes-which would mean people living in high-tax states like New York, California, and IL pay more.