GOP Targets Trillion-Dollar Tax Break for Democratic States
- Deduction benefits wealthy filers in high-tax jurisdictions
- Conservatives call it subsidy for state, local tax increases
GOP Targets Trillion-Dollar Tax Break
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Conservative activists and House Republican leaders want to eliminate a trillion-dollar tax break that mostly benefits wealthy filers in Democratic states, a push that could further imperil President Donald Trump’s hopes of winning bipartisan support for a tax overhaul.
Ever since the inception of the federal income tax in 1913, taxpayers have been allowed to deduct the state and local income taxes they pay from their taxable income. Anti-tax crusaders, including Grover Norquist, the president of Americans for Tax Reform, say the deduction represents bad policy.