GOP Leaders Consider Changing State and Local Tax Deduction Instead of Ending It
- House tax chief discusses capping deduction for top earners
- ‘They’re going to need our votes,’ New York’s Collins says
The U.S. Capitol building stands past a runner pausing at the Washington Monument in Washington, D.C., U.S., on Tuesday, July 11, 2017. As Congress returned from its mid-summer break yesterday for a crucial three-week stretch, several obstacles await lawmakers, including an ongoing health-care fight, divisions among Republicans on the basic parameters of a tax bill, and a maelstrom of upcoming deadlines to keep the government running and avert a catastrophic default on U.S. debt.
Photographer: Andrew Harrer/BloombergRepublican leaders are considering putting limits on the $1.3 trillion state and local tax deduction -- instead of eliminating it -- in order to secure votes from members in the hardest-hit states.
House Ways and Means Chairman Kevin Brady discussed options at a dinner Monday night with several GOP members who have defended the break, known as the SALT deduction. They talked about measures including capping the deduction for top earners, and allowing individuals to choose between deducting mortgage interest or property taxes -- but not both -- when calculating their taxes, according to several dinner attendees.