Republicans Consider Dropping Second Phase of Tax Cuts After SALT Backlash

  • House GOP members in high-tax states could face tough vote
  • GOP leaders planned on legislation serving as political tool
IRS Moves to Block New York, New Jersey Effort to Skirt State Tax Cap
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House Republicans had planned to use a second phase of tax cuts to force Democrats into a difficult vote ahead of mid-term elections. Now, party leaders may drop the effort, fearing it could backfire by antagonizing voters in some hotly contested Congressional districts.

The proposal would make the individual changes in last year’s overhaul permanent -- including the $10,000 annual cap for state and local tax deductions, one of the law’s most disputed provisions. That would put Republican lawmakers in high-tax states like New York, New Jersey and California in the tricky position of either supporting the cap, or voting against tax cuts backed by their party.