Republicans warn deductions repeal will kill GOP tax bill
WASHINGTON — Republican lawmakers from New York, New Jersey, California and other high-tax states warned House leaders Thursday that tax reform won’t pass if it fully repeals state and local tax deductions.
“The votes won’t be there,” said Rep. Peter King (R-L.I.)
“We put it in economic terms but also in political terms. This is going to hurt the people who voted for Donald Trump.”
To make his position clear, King on Thursday voted against a GOP budget bill that sets the stage for tax reform.
“I voted against the budget resolution — which I’ve never done before — to send a signal that we’re serious,” said King, who was one of 18 Republican no votes.
Republicans need 217 votes to pass purely partisan legislation when all 435 members are voting. They can afford to lose roughly 24 votes depending on vacancies and absences. But there are 28 Republicans in New York, New Jersey and California combined — the states that would be hardest-hit by the loss of the state and local tax deductions.
King suggested families making up to $400,000 get full deductions, which would be reduced in phases for higher earners. Rep. Tom Reed (R-NY) suggested $350,000.
“I think there’s recognition that if you move to this type of policy and you have families that are left holding the bag that’s just not sustainable,” Reed told The Post. “… I believe there is a solution here in the making.”
But leadership emerged from the meeting offering little public assurances.
Rep. Kevin Brady, chairman of House tax writing committee, said he’s made “no change” to the tax framework that currently calls for a full repeal of the state and local tax deduction but he’s keeping an open mind.
“We’re listening carefully to their concerns,” Brady said Thursday.