The controversy which is beginning to develop in the House on tax deductions will not be an issue in the upper chamber, Senate GOP members say. They add that the Senate Republican conference is united when it comes to state and local tax deduction, as shown by the test vote earlier this year.
There aren’t any Senate Republicans who represent the largest high-tax states, which helps Senate Majority Leader Mitch McConnell. When asked whether some Senate Republicans are asking for the state and local taxes deduction to remain in the law, Orrin Hatch, chairman of the Senate Finance Committee, said he didn’t “know anybody who’s advocating strongly for that.”
Deductibility for state and local tax has been hailed as a reform which is expected to raise over $1 trillion to help balance out the tax overhaul costs. Earlier this month, Senate Republicans voted in favor of an amendment to the budget resolution which would eliminate tax breaks and use that money to offer the middle class tax relief. The only Republican Senator who voted against was Paul Rand.
During the debate, the Senate also rejected a Democratic amendment, sponsored by Maria Cantwell, which would have imposed procedural obstacles to changing the state and local tax deduction. Some House Republicans voted against the budget in an attempt to suggest that these tax deductions cannot be completely eliminated, but the resolution was passed regardless of such concerns.
The Republican plan will scrap the alternative minimum tax which prevents wealthy taxpayers from deducting local and state taxes as a result of their high incomes, the Hill reports. Republican Senator Susan Collins said on Monday that she is against cutting taxes for wealthy taxpayers.
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