The Race for a Major Tax Overhaul Is On. Here’s One Big Obstacle
- State and local deduction offers first stumbling block to bill
- House tax chief says he’ll release legislation by Nov. 1
Rep. Peter King Not Sure He'll Vote for Tax Bill
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The House narrowly adopted a budget resolution, but a lingering obstacle to overhauling the U.S. tax code re-emerged: whether or how to limit a federal tax break that benefits high-tax states including New York and New Jersey.
President Donald Trump and congressional Republican leaders have proposed abolishing the state and local tax deduction -- a prospect that prompted many GOP lawmakers in those states to vote against the budget. It passed, 216-212.