Date posted: October 31, 2017
Measure to keep deductions for property taxes, mortgage interest and charity
Ways and Means Chairman Kevin Brady clarified to reporters Monday that a portion of the state and local tax deduction that allows taxpayers to deduct either their income or sales taxes will not be part of the GOP tax overhaul bill.
The measure will keep itemized deductions for property taxes, mortgage interest and charitable donations, Brady confirmed.
Whether the property tax deduction may be capped or limited based on a taxpayers income level, the Texas Republican said those options remain on the table.
“We’re going to visit with SALT members when they get back into town tomorrow about the final design of that,” Brady said. “But the response we got from them was very positive. Big step in the right direction.”
He declined to characterize the proposal to keep the property deduction as a deal on SALT, saying, “Well, it’s a large group and have varied opinions, but I know the response was very positive. We’re clearly trying to help them.”
Brady said reports that tax writers plan to phase in the reduction in the corporate tax rate are not true, noting no decisions have been made. He declined to say whether phasing in the 20 percent rate is currently a part of discussions.
“At this point, we’re trying to get the growth right up front,” Brady said. “So 20 percent is pretty important.”
The chairman spoke briefly to reporters during a bathroom break in a meeting with Republican members of his panel to hammer out final details of the tax bill.