Seems the high-tax states do not like it one bit - from the New York Post:
House GOP pushing tax overhaul panned by New York officials
House Republicans are moving ahead with a plan to eliminate deductions for state and local taxes in the new federal tax code — a move Gov. Cuomo has warned would be a “deathblow” to New York.
Kevin Brady (R-Texas), chair of the House Ways and Means Committee, said Tuesday that he’s working closely with the White House on a plan that to create three federal tax brackets — 12, 25 and 33 percent.
But the plan would also end the deduction for state and local taxes.
“We are proposing a change,” Brady said in an interview. “Rather than keep Washington taxes high and have just a few get relief from state and local taxes… No longer will Washington punish or reward you based on how much you earn or where you choose to live.”
And the wailing is coming from two states:
Eliminating the state and local tax deduction would hit New York and California especially hard, according a Tax Policy Center 2016 study. Combined, residents of the two states accounted for 32 percent of the total state and local tax deductions claimed nationwide.
I love it! A bit more - some details:
Brady said he and White House started in agreement on “80 percent” of the items and have since become closer. The final unified plan is expected to be introduced this spring.
The goal of the GOP House plan is to make the tax code so fair and simple that Americans can file their taxes on a postcard.
Tax breaks would be preserved for home mortgage interest, charitable giving, child credits, savings plans, higher education and earned income tax credits.
“We kept the key elements most families count on,” Brady said.
Trump’s campaign tax plan didn’t eliminate the state and local tax deduction completely, but made claiming it more difficult by capping all itemized deductions to $100,000 for individuals and $200,000 for couples.
Emphasis mine - there are way too many loopholes. It is time to wipe the slate clean and make it simple. Art Laffer had it right. Tip of the hat to Bayou Renaissance Man for the link.
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