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Republicans consider keeping the state and local tax deduction as they search for votes for overhaul

Gary Cohn, director of the White House National Economic Council (Drew Angerer / Getty Images)
Gary Cohn, director of the White House National Economic Council (Drew Angerer / Getty Images)

Congressional Republicans are considering keeping the state and local tax deduction in some form as part of the party’s tax overhaul to avoid losing votes of lawmakers from California and other states that have large numbers of residents who use the break.

The tax plan unveiled by President Trump and key Republicans last week proposed to scrap the deduction. That would help offset the plan’s business and individual tax cuts by generating about $1.3 trillion in additional federal revenue over the next decade.

Rep. John Faso (R-N.Y.) said Tuesday that lawmakers from states like his own that would be hit hard by the loss off the deduction are raising concerns with House Republican leaders.

“They’re cognizant of our concern, and there’s a lot more discussion that needs to take place,” Faso said. “There are a lot of ways to address this. We want the leadership and the tax writers to consider alternatives that will treat everyone fairly.”

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