State, federal tax shifts could pack nasty one-two punch


We passed something? We passed something! Chip Somodevilla Getty Images

The House proposal, for example, almost eliminates the state and local income-tax deduction - a measure that barred the federal government from taxing money residents spent on state and local income, sales and property taxes - but still would allow people to deduct property taxes capped at $10,000.

For Massachusetts residents, and for people in other states that have a state income tax, one of the biggest changes proposed is the elimination of the state and local tax deduction. The House bill would eliminate the estate tax entirely.

"I'm committed to" a compromise that would preserve the deduction for state and local property taxes, Brady said on "Fox News Sunday".

Republican representatives from California, New York and New Jersey are expected to be key swing votes that could make or break the GOP tax plan efforts.

On Sunday, Brady rejected the idea that some middle-class families would be "losers" under the House plan because of provisions that include ending deductions for student loans and for medical expenses that exceed certain individual thresholds.

That sort of talk from Republicans is making investors nervous about GOP reforms, which promised large cuts to corporate tax rates that they say will in turn raise wages.

To help compensate for the cuts in tax revenue, the government will have to make public service cuts, economists said - and that's how the tax plan could be most harmful to Berkshire County. According to the House Republicans, the proposed tax reform cuts is planned to be implemented immediately.

Both seem sure to produce winners and losers, tax analysts say.

She laid out a scenario in which 10 reporters had a beer together every day and paid the $100 tab under a mechanism akin to the federal income tax system. "Cut top rate to 35 % w/all of the rest going to middle income cuts?" They pushed Brady to keep the property-tax deduction in the House bill.

King said he can't vote for the bill right now and bemoaned the justification of taking deductions away from "high-tax" states such as NY.

The Congressional Budget Office did estimate this could provide $338 billion in the next 10 years.

"Republicans should go back to the drawing board and fully restore the SALT deduction", he said in a statement. Senate Majority Leader Mitch McConnell, R-Ky., also acknowledged on Friday in a New York Times interview that he had erred when he said that "nobody in the middle class is going to get a tax increase".

Democrats have criticized the plan.

Republican Representative Peter King has fiercely opposed the elimination of the SALT deduction, saying many in his home state of NY earning $300,000 a year were hardworking, two-income families facing a very high cost of living.

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