The Republican Party's Tax Reform Bill Could Face Death by a Thousand Cuts
In theory, the Republican Party’s proposed legislation for tax reform is easier than health care: It would cut various taxes paid by the wealthy and reduce rates for individuals and corporations. While certainly complex, the tax code is easier to change than the health care system, where each part relies on another.
But Republicans are already finding that their tax reform proposal is trickier than it seemed at first.
The latest trouble is something called the State and Local Tax Deduction. This is a pretty straightforward part on your tax return: You get to take whatever you paid in state income tax (or, less frequently, sales tax) and deduct that amount from your taxable income, which lowers your tax bill.
About 43 million people took advantage of the deduction in 2013, making it the most popular itemized deduction in the tax code, according to the Tax Foundation.
But blue state Republicans revolted. Because state taxes are higher in places like New York and California, their constituents are much more likely to be hurt by this change.
https://www.msn.com/en-us/news/politics/the-republican-partys-tax-reform-bill-could-face-death-by-a-thousand-cuts/ar-AAu2Mso?li=BBnbcA1&ocid=edgsp
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