Property taxes and tax plan of House Republicans

Last minute changes in the tax bill are being made by House GOP leaders to convince recalcitrant Republican members. A provision is being injected into the draft which will permit Americans to deduct local property taxes. These taxes will be deducted from federal taxable income. Kevin Brady, a Texas Republican, and Chairman of House Ways and Means Committee had planned for a long time to stop people from deducting any local taxes or state taxes from federal taxable income. This was supposed to be a component of the tax rules' overhaul. This intention became jeopardized after Republicans elected from high tax states pushed to the contrary. Discussions continue until now. Taxpayers itemizing their deductions could write off property taxes. They could also select to deduct either the local income or state or the sales taxes.

New filing system

Chairman Brady told reporters on October 30 that property deduction ability from the federal income will be one of three items which the GOP has promised Americans. He is working feverishly to put finishing touches on the tax overhaul draft. The final is scheduled to be released during the last days of October or in the beginning days of November. All details are extremely confidential.

Republicans have repeatedly said tat the new tax filing system would be an extremely simple one. If realized, it will be a postcard like filing system. He mentioned that the items on the postcard will be deductions on property taxes, deductions on mortgages, and deductions on charity. However, an important lawmaker said that the conflict has been solved. The said lawmaker was a key negotiator on local tax and state tax issues.

Deductions

Republican Tom Reed, a Ways and Means lawmaker elected from New York, a high tax state, said the lawmakers continue to struggle on how to preserve the deduction. He added that the situations remain too fluid to make out anything. There could well be a possibility that the deduction could be capped do that it cannot be claimed by the high-income taxpayers.  Reed said that he is comfortable with any compromise which is in tandem with the electorate he represents.

Both Reed and Brady mentioned a private meeting of members of the GOP Ways and Means in conference room located on fifth floor of Longworth House Office Building. This location was where tax writers have spent a number of hours fine tuning the tax plan.

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