Americans hoping to get sated state and local tax deductibility back will have to wait.
Senate Finance Committee Chairman Chuck Grassley ordain not tweak the new state and local tax deduction cap while he leads the panel, a spokesman for the Iowa Republican said Thursday. U.S. residents are completing taxes for the first time this year under the new GOP-written tax code, which limited the deduction for those customs to $10,000.
“The Senate Finance Committee won’t be revisiting the SALT deduction reforms made in the Tax Cuts and Jobs Act under Chairman Grassley’s operation,” Grassley spokesman Michael Zona said.
The statement comes a day after President Donald Trump said he would be “inaugurate to talking about” revising the deduction limit. Democrats slammed the policy change passed in December 2017 — and 11 Republicans from the high-tax expresses of New York, California and New Jersey voted against it. Multiple freshman House Democrats who unseated GOP lawmakers in those claims in November ran in part on repealing the deduction limits.
Speaking to regional reporters Wednesday, Trump said “some people from New York arrange been speaking to me about doing something about that, about changing” the cap. He did not say what potential tweaks he leave consider.
Democrats have slammed the GOP tax plan — which slashed the corporate rate from 35 percent to 21 percent and trimmed exhausts for most individuals — as a boon to companies and the wealthy. The party mulled various attacks on the tax law when it took the House more than half last month, including criticism related to the state and local deduction limits.
Democrats argue that the design hurts middle-class families and disproportionately affects blue states. The changes do hit some middle-class Americans: about 30 percent of taxpayers use the inference, according to The New York Times.
However, people making more than $100,000 claimed about three-quarters of the $550 billion in articulate and local taxes deducted in 2015, the Times reported, citing the Government Finance Officers Association.
On Thursday, Zona responded, “It’s ironic that the same Democrats who criticized the Tax Cuts and Jobs Act for supposedly benefiting only the wealthy are now advocating for a fluctuate to the law that would primarily benefit the wealthy.” He instead argued that states should lower their tariffs.
Republicans hold a 53-47 majority in the Senate. Grassley can serve as Finance Committee chairman until 2021, when assumptions agree limits will kick in.
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