The lower chamber’s passage of the Senate’s 2018 budget resolution Thursday brought GOP lawmakers one step closer to their goal of overhauling the tax code, but tensions remain over a proposal to eliminate state and local deductions.
Twenty Republicans joined Democrats in voting against the measure, which included reconciliation instructions allowing Republicans to fast-track tax reform and add $1.5 trillion to the deficit over the course of a decade. Members from high tax-rate states including New York, New Jersey, Illinois and California are fighting to keep the deduction in place, arguing the change would lead to a significant tax hike for their constituents. Critics of the proposal met with top tax writers shortly after the vote, but have yet to strike a compromise on the issue.
“This is a serious issue, and we’re taking it seriously. I’m going to stay at the table, so is leadership, with our New York and New Jersey lawmakers to try to find a solution where their tax taxpayers are better off after tax reform in their states,” House Ways and Means Committee Chairman Kevin Brady told reporters after the meeting. “We continue to hone through some solutions and what it means for their taxpayers — we’re making progress, but we still have work to do.”
GOP Rep. John Katko of New York said he and his colleagues who also voted against the budget sent a message with their opposition that they aren’t going to back down on the matter.
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