Republicans Are Reconsidering Full Repeal of State and Local Tax Deduction<br />Representative Mark Meadows, Republican of North Carolina and the chairman of the hard-line House Freedom Caucus, suggested<br />that as a compromise, the deduction for state and local taxes could be retained but capped at a certain amount, in order to provide “a fair deduction but not one that is disproportionately enjoyed by people in New York or New Jersey.”<br />“That way, North Carolina would be on parity with other states,” he said.<br />The White House and Republican lawmakers are considering alternatives to an outright repeal, including allowing taxpayers to choose between deducting their mortgage interest or state<br />and local taxes, a limit on the deduction or a special tax break for middle-class families that live in areas with high property taxes.<br />She referred reporters to Mr. Brady’s comments on Monday, when he told a press gathering<br />that party leaders were still crafting the details of their plan, and “listening very closely to all our lawmakers, Republicans and Democrats alike, who are in high-tax states.”<br />Preserving the deduction entirely would raise the cost of the Republican tax plan by more than $1 trillion over 10 years<br />and an additional $2.3 trillion over the following decade, according to an analysis by the Tax Policy Center, a nonpartisan think tank.<br />While he is committed to getting the corporate tax rate to 20 percent, Mr. Cohn said that the deduction was not a “red line.”<br />The framework called for cutting the corporate tax rate to 20 percent from 35 percent, creating a<br />new lower 25 percent tax rate for “pass through” businesses and doubling the standard deduction.<br />Representative Chris Collins, Republican of New York, said in an interview on Tuesday<br />that party leaders had assured him “there’s not going to be full repeal” of the state and local tax deduction.
