House Republicans on Wednesday are expected to roll out their much-anticipated bill to reform the nation’s tax code. We preview their plan and review the framework of the legislation.
Over the weekend, House Ways and Means Committee Chairman Kevin Brady said individuals would still be able to deduct their state and local property taxes, a move to win over Republicans from high-tax states. Brady’s announcement came on the same day that the National Association of Home Builders withdrew its backing for the bill. The group wanted to repeal deductions for property taxes and mortgage interest and replace them with a new tax credit.
Brady also stated that people would no longer be allowed to deduct income or sales taxes from their federal returns. A coalition including the National Association of Realtors and the American Federation of Teachers said it will “vigorously oppose this plan,” claiming that eliminating the deduction would dictate winners and losers among states and unfairly penalize taxpayers in states that rely heavily on income taxes.
Otherwise, Republicans and President Donald Trump have expressed a desire to lower the corporate tax, eliminate estate taxes and double the standard deduction.
According to the Wall Street Journal, the plan is for the House and Senate to pass their bills by Thanksgiving and have a final bill to Trump’s desk by New Year’s Day.
How do you feel about the Republicans’ framework for tax reform? Should filers still be allowed to deduct their property taxes or not? What do you especially like or dislike about the GOP plan? Let us know at 1-800-642-1234 or ideas@wpr.org. You can also tweet us @wprmornings or post on the Ideas Network Facebook page.
Episode Credits
- Kate Archer Kent Host
- Bill Martens Producer
- Howard Gleckman Guest
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