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Senate Democrats fail in first attempt to save state and local tax deduction

Sen. Maria Cantwell (D-Wash.) (Alex Wong / Getty Images)
Sen. Maria Cantwell (D-Wash.) (Alex Wong / Getty Images)

Senate Democrats on Thursday failed in their first attempt to save the state and local tax deduction, which helps many residents of California and other high-cost states reduce their federal income tax bills.

The Republican-controlled Senate voted 52-47 to reject an amendment that would have prevented the Senate from considering any bill that repeals or limits the deduction as part of a planned tax overhaul.

But the fight over the break, which the Republican tax plan would scrap, is far from over as legislative efforts in Congress are just beginning.

And supporters of the deduction seized on a new argument Thursday, noting that the Republican tax overhaul framework does not propose to eliminate the ability of corporations to deduct state and local taxes as a business expense.

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