Much like the Obamacare repeal and replace effort earlier this year, the past couple of weeks have been an invariable roller coaster ride for GOP representatives as Congressional leaders have tried to form some level of consensus within a fractured party with competing interests. This week will undoubtedly be no different.
In light of that, we’ve taken a look at some of the key differences between the Senate and House tax bills as they currently stand. As of now the biggest difference is the treatment of the State and Local Tax (SALT) deduction. While the Senate has called for a full repeal of the SALT deduction, House members have drawn a hard line, even though almost all political “hard lines” become flexible under the right circumstances, demanding at least $10,000 worth of property tax deductions be allowed. Per Bloomberg:
The House and Senate are on a collision course over one of the most prized individual breaks in the tax code.
The Senate Finance Committee will start debating late Monday afternoon the 247-page tax proposal released last week by Chairman Orrin Hatch. As of now, the ‘conceptual’ mark has some significant differences with the tax bill the House Ways and Means Committee approved last week — chief among them the Senate’s call for repealing the state and local tax deduction entirely.
Ways and Means Chairman Kevin Brady took a hard-line approach during a ‘Fox News Sunday’ interview, saying the House won’t accept a tax bill that eliminates the deduction entirely. The House bill retains the deduction for property taxes up to $10,000.
This post was published at Zero Hedge on Nov 13, 2017.